The State Bank on India (SBI) on Wednesday reduced interest rates on saving deposits and term deposits or fixed deposits (FDs) across select maturities. The largest lender has sharply reduced the pricing on savings deposits under Rs 1 lakh by a 25 bps to 3.25 percent from November 1.
The SBI has also revised its marginal cost of funds-based lending (MCLR) rates by a marginal 10 basis points across all tenors.
"In view of the adequate liquidity in the system, the State Bank of India announces revision in interest rate on Savings Bank Deposits (with a balance upto Rs 1 lakh) from 3.50 per cent to 3.25 per cent w.e.f. 1st November 2019. Bank also slashes its Retail TD and Bulk TD interest rates by 10 bps and 30 bps respectively for 1 year to less than 2 years' tenor w.e.f. 10th October, 2019," the bank said in a statement.
This is the sixth reduction in the lending rates by the largest lender since April. The move brings respite for thousands of SBI customers as it is likely to make home and other retail loans cheaper for the existing borrowers.
“In view of the festival season and extending the benefits to customers across all segments, we have reduced our MCLR by 10 bps across all tenors,” the bank said in a statement.
The reduction in MCLR comes days after the Reserve Bank of India reduced the repo rate by 25 bps.