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SBI announces cut in MCLR, deposit rates

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The largest state-run lender State Bank of India (SBI) on Thursday announced a reduction in its Marginal Cost of Funds based Lending Rate (MCLR) by 15 basis points across all tenors. With this the one year MCLR is now 7.25% from the earlier 7.40 percent. This will be effective from May 10 onwards.

The interest rates for retail term deposit was also cut by 20 bps for a 3-year-tenor. This will be effective from May 12. This is the twelfth consecutive reduction in the bank’s MCLR and third cut in its deposit rates in two months.

It also introduced a new product ‘SBI Wecare Deposit’ for Senior Citizens in the retail term deposit segment where senior citizens will get an additional 30 bps premium on term deposits with 5 years and above tenor. This scheme would be in effect upto September 30, 2020, the lender said.

SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest lender with a 34% market share in home loans and 34.86% in auto loans.