State Bank of India cuts benchmark lending rate by 0.05% across maturities

The reduction in marginal cost of funds based lending rate (MCLR) came after a gap of almost 10 months.

The country’s largest lender State Bank of India (SBI) has slashed the benchmark lending rate by 0.05% across maturities.

The State Bank of India (SBI) logo is seen on bags carried by people in Mumbai. (REUTERS)

The reduction in marginal cost of funds based lending rate (MCLR) came after a gap of almost 10 months. The bank had last cut the rate on January 1.

The move by the SBI will trigger rate cut by other lenders.

With the reduction, the MCLR for one year has come down to 7.95% from 8%, the SBI website said.

The new rate would be effective November 1, it said.

The MCLR on overnight borrowings has been reduced to 7.70% from 7.75%, while the lending rate for three-year tenure has been cut from 8.15% to 8.10%.

Similarly, the bank reduced the lending rate by similar percentage point for tenures including one month, three months, six months and two years.

Meanwhile another public sector lender Allahabad Bank also reduced the MCLR rate by 0.15% across all tenor.

With the reduction, one year MCLR has come down to 8.30% as against 8.45% effective Wednesday.