SBI REDUCES MCLR ACROSS TENORS

MUMBAI: The country’s largest lender State Bank of India (SBI) on Friday announced a 5 basis points reduction in its MCLR across tenors, effective February 10. This is the ninth consecutive cut in MCLR by the bank in the current fiscal. With this reduction, the one-year marginal cost of fund-based rate (MCLR) has come down to 7.85% per annum from 7.90%, a bank statement said. The reduction in MCLR by the bank comes a day after the Reserve Bank of India (RBI) left the repo rates unchanged at 5.15%but announced long-term repo operation for up to ₹1 lakh crore, making cost of funds cheaper for banks. SBI further said in view of surplus liquidity in the system, it has realigned its interest rate on retail term deposits and bulk term deposits, effective February 10.