SBI reduces MCLR by 5 bps across all tenors from next week

Kolkata, 7 February : Announcing the 9th consecutive cut in the interest rates for common individual depositors during the current financial year(2019-20), State Bank of India (SBI),the country’s largest Public sector Bank, has decided to reduce its Marginal Cost of funds based Lending Rate (MCLR) by 5 basis points across all tenors from next week.
Informing this SBI sources here today stated that with effect from 10 February the one year MCLR would now come down to 7.85 per cent per annum from 7.90 per cent .
‘In view of surplus liquidity in the system, SBI realigns its interest rate on Retail Term Deposits of less than Rs.2 Crores and Bulk Term Deposits of Rs.2 Crores and above’ the sources said adding the bank also slashed term deposits rates by 10 to 50 basis points in the Retail segment and 25 to 50 basis points in the Bulk segment.
The impact of recent RBI policy measures and reduction in deposit rates would, however, be reflected in the next review of MCLR, they added.