Money & Banking

SBI cuts lending rates by 75 basis points

Our Bureau Mumbai | Updated on March 27, 2020 Published on March 27, 2020

File photo   -  Bloomberg

The new lending and deposit rates are effective from April 1, 2020 and March 28, 2020, respectively

State Bank of India (SBI) on Friday said it will pass on the entire 75 basis points cut (bps) in the repo rate to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR).

India’s largest bank has also decided to cut retail term deposit rates and bulk term deposit rates by 20 to 50 bps and 50 to 100 bps, respectively, across tenors. One basis point is equal to one-hundredth of a percentage point.

The new lending and deposit rates are effective from April 1, 2020 and March 28, 2020, respectively.

The EBR has been reduced to 7.05 per cent from 7.80 per cent. The RLLR has been reduced to 6.65 per cent from 7.40 per cent.

Consequently, the equated monthly instalments (EMIs) on eligible home loan accounts (linked to EBR/RLLR) get cheaper by around Rs 52 per Rs 1 lakh on a 30 year loan.

SBI, in a statement, said decision on MCLR (marginal cost of funds based lending rate) will be taken when the ALCO (asset-liability management committee) meets next month. The impact of recent RBI policy measures and reduction in the Bank’s deposit rates will be reflected in the next review of MCLR, it added.

Published on March 27, 2020

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