Mumbai: State Bank of India has reduced its one-year marginal cost of fund-based lending rate by 10 basis points to 7.90%, with effect from Tuesday, the lender said in a release today.
Consequently, the bank's lending rates will be in the range of 7.65-8.20%. This is the eighth consecutive time the state-owned bank has cut its MCLR rates in 2019-20 (Apr-Mar).
With this cut, SBI's one-year MCLR has come down by 65 bps since Apr 1. The Reserve Bank of India has cut its repo rate by 110 bps in the same period.
The public sector lender said it decided to cut its lending rates in order "to pass on the benefit of its reducing cost of funds to customers". The RBI on Thursday chose to maintain status quo on rates, emphasising on the need for faster transmission of previous rate cuts.
RBI norms require banks to update their lending rates as per the marginal cost of funds on a monthly basis.
