The country's leading PSB State Bank of India (SBI) has reduced its lending rate by up to 10bps for shorter tenures of three months. One basis point is one-hundredth of a percentage point. The new 3-month MCLR stands at 6.65%, which is comparable to the external benchmark linked lending rate or EBR.
The move is in a bid to boost plummeting demand for credit. The new rates will come into effect from July 10. The rate cut will boost credit offtake and revive demand in the market, said the bank in a statement. As per the bank's exchange filing this is the 14th consecutive MCLR rate cut.
Meanwhile, shares in SBI jumped for the third straight day by 3% to Rs.194.2 per share on the NSE.