SBI cuts 1-year deposit rates by 15 basis points

The country’s largest lender, State Bank of India, on Friday announced a 5 basis points cut in its Marginal Cost of Funds based lending rates (MCLR) across all tenors while steeply reducing fixed deposit rates. The one-year MCLR to which most of its loans are linked will come down to 8 per cent per annum from 8.05 per cent. This is the bank’s seventh consecutive cut in MCLR in the current financial year.

The bank also cut the retail term deposit rates by 15 basis points for ‘one year to less than two years’ tenor. For bulk term deposits—of Rs 2 crore and above— the bank slashed interest rates by 30-75 basis points across tenors.

“In view of adequate liquidity in the system, SBI revises its interest rates on Term Deposits,” the bank said. Both the new MCLR rate and deposit rates will be effective from November 10.