SBI cuts MCLR by 5 bps 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 cent per annum from 7.90 per cent, 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 per cent but announced long-term repo operation for up to Rs 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 (less than Rs 2 crore) and bulk term deposits (Rs 2 crore and above), effective February 10. It slashed term deposits rates by 10-50 bps in the retail segment and 25-50 bps in the bulk segment.