SBI, the country's leading state-run lender on Friday reduced lending rates, with it loans can be availed at cheaper rates. The bank slashed MCLR or marginal cost of funds based lending rate by 5 bps across all tenures. Perhaps this is the 7th time, the lender has slashed rate in the current FY 2019-20.
It is being said the slowdown has led the key macro indicator i.e. credit offtake to a 25-year low figure.
So, the new rates that will come into effect from November 10 will see 1-year MCLR move lower to 8% from the current 8.05%. Also, the bank has slashed its deposit rate for one year to less than two years maturity by 15 bps. 1 bps is one-hundredth of a percentage point.
In respect of bulk deposits, the rate has gone down by 30-75 bps across different maturity timeframes.