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SBI cuts fixed deposit, lending rates

No minimum balance for SB account

The country’s largest lender, State Bank of India, on Wednesday reduced its lending rate by 10-15 bps, and lowered fixed deposit and savings account interest rates. The bank has done away with the minimum balance requirement for the savings account.

SBI has reduced the one-year marginal cost of fund-based lending rate by 10 bps to 7.75% with effect from March 10.

“This is the tenth consecutive cut in MCLR in FY 2019-20,” the bank said.

EMIs to get cheaper

As a result, equated monthly instalments on eligible home loan accounts linked to MCLR will get cheaper by around Rs. 7 per 1 lakh on a 30-year loan. EMIs on car loans will also be reduced by Rs. 5 per 1 lakh on a 7-year loan.

The bank has reduced the retail term deposit rates by 10 bps for deposits with a maturity of one year and above while the rate has been cut by 50 bps for deposits up to 45 days.

Interest rate on bulk deposits has been reduced by 15 bps for deposits in ‘180 days & above’ tenors. SBI said the deposit rates had been reduced “in view of adequate liquidity in the system”.

The bank also reduced the savings bank interest rate to 3% from 3.25%.

While waiving off the average monthly balance (AMB) requirement for all 44.51 crore savings accounts, the bank said, “All SBI customers will now enjoy the zero balance facility in their SB accounts.”

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