The country’s largest lender State Bank of India (SBI) slashed benchmark lending rate by 0.05 per cent across maturities. The reduction in marginal cost of funds based lending rate (MCLR) came after a gap of almost 10 months.
The move by the SBI will trigger rate cut by other lenders. SBI said that the MCLR for one year has come down to 7.95 per cent from 8 per cent. The new rate would be effective from tomorrow. The MCLR on overnight borrowings has been reduced to 7.70 per cent from 7.75 per cent, while the lending rate for three-year tenure has been cut from 8.15 per cent to 8.10 per cent.
Meanwhile, another public sector lender Allahabad Bank also reduced the MCLR rate by 0.15 per cent across all tenor. With the reduction, one year MCLR has come down to 8.30 per cent as against 8.45 per cent effective tomorrow.