SBI cuts MCLR by 5 bps across tenors

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 ninthconsecutive 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 the cost of funds cheaper for banks.

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SBI further said in view of surplus liquidity in the system, it hasrealigned 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.

"The impact of recent RBI policy measures and reduction in deposit rates will be reflected in the next review of MCLR," the bank said. 

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