SBI cuts savings rate by 25 basis points on all deposits

New Delhi: The country’s largest lender, State Bank of India (SBI), on Tuesday said it has cut savings rate by 0.25 per cent to 2.75 per cent on all deposits.

The new rate will come into effect from 15 April, 2020.

In view of adequate liquidity in the system, SBI realigned its interest rates on Savings Bank Deposits, with effect from 15 April, 2020, SBI said in a statement.

The savings rate has been reduced to 2.75 per cent from 3 per cent, it said.

The bank has also reduced the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors.

The one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent per with effect from April 10, 2020, it said in the statement.

It is the 11th consecutive cut in MCLR in 2019-20, the bank said.

The one-year tenor is the benchmark against which most of the consumer loans are priced.

“Consequently, EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around ₹24.00 per 1 lakh on a 30 year loan,” SBI said.

(PTI)

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