State Bank of India (SBI) on Friday announced cut in deposit as well as lending rates with effect from November 10, 2019. SBI cut its marginal cost of fund-based lending rate (MCLR) by 5 basis points across all tenors. SBI also announced a revision in fixed deposit rates (FD) rates by 15 basis points for deposits of one year to less than two years maturity. This is the second bank in less than a week to announce lending rate cut. HDFC Bank reduced MCLR rate by 10 basis points effective November 7, 2019.
State Bank of India's one year MCLR after the cut comes down to 8% per annum, while three-year MCLR comes down to 8.2% per annum. This will be 7th consecutive cut in MCLR in FY20. Banks usually link one-year MCLR with retail loans such as home and auto loans. SBI also slashed bulk deposit rates by 30-75 bps across tenors. The bank cited adequate liquidity in the system for lowering FD rates.