India markets closed

State Bank of India (SBI) cuts Fixed Deposit interest rate, MCLR again

Rajeev Kumar
sbi fixed deposit rate 2019

SBI Fixed Deposit Interest Rate, MCLR 2019: State Bank of India (SBI) on Friday announced another reduction in its Fixed Deposit interest rate and marginal cost of funds-based lending rate (MCLR) by 5 bps across all tenors. The one-year MCLR will come down to 8.0 per cent per annum from 8.05 per annum from November 10, 2019, SBI said in a statement. This is the seventh consecutive cut in MCLR by the country’s largest lender in FY 2019-20. SBI has also cut interest rates on term deposits (or fixed deposits) of different tenors.

SBI also said that in view of adequate liquidity in the system, it has revised interest rates on Term Deposits with effect from November 2019:

  • Retail Term Deposit interest rate has been reduced by 15bps for 'one year to less than two years tenor
  • Bulk Term Deposit interest rates have been reduced by 30 to 75 bps across tenors.

ALSO READ |SBI Annuity Deposit Scheme: Want fixed monthly income? This can help

Last month also, SBI had cut its MCLR for the sixth consecutive time in this Financial Year. It had also cut rates on its savings and term deposit rates, days after the Reserve Bank of India cut rates by 25 basis points to 5.15%. In October, SBI had cut one-year MCLR to 8.05% from 8.15% with effect from October 10.

WATCH VIDEO: What is Repo Linked Lending Rate, Home Loan? RLLR meaning, comparison vs MCLR

SBI is the largest commercial bank in terms of assets, deposits, branches, customers and employees. It is also the largest mortgage lender in the country. "As on September 30, 2019, the bank has a deposit base of over Rs. 30 lakh crore with CASA ratio of little more than 45% and advances of more than Rs. 19 lakh crore. SBI commands 35% market share each in home loans and auto loans. The Bank has the largest network of nearly 22,000 branches in India with an ATM / CDM network of over 58,500," the bank said.