Mumbai: The country’s largest lender State Bank of India (SBI) on Wednesday said it has reduced its fixed deposit rates for certain tenors and the marginal cost of funds-based lending rates (MCLR) across various tenors. Making it the second reduction in a month, the public sector bank has reduced retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for a few tenors. Fixed deposits (FDs) maturing between 7 days to 45 days will offer an interest rate of 4 per cent as against 4.50 per cent earlier. Also Read - SBI Customer Alert: SBI Internet Banking, YONO Services to be Affected Today. Details Here
Interest rates on FDs maturing in one-year and above have been reduced by 10 basis points. One-year to less than two-year tenor FD will earn an interest rate of 5.90 per cent against 6 per cent earlier. FD for similar tenor will fetch an interest rate of 6.40 per cent instead of 6.50 per cent for senior citizens. The bank has also reduced interest rates on bulk term deposits (Rs 2 crore and above) by 15 basis points for 180 days and above tenors. Also Read - Are You COVID Positive And Need Funds But Can’t Burrow From Anyone? Here’s What You Can Do
FD rates in the bulk category tenure of one year and above will earn 4.60 per cent instead of 4.75 per cent. In February, the bank had slashed term deposits rates by 10-50 basis points in the retail segment and 25-50 basis points in the bulk segment. Further, the one-year marginal cost of fund-based lending rate (MCLR) has been reduced by 10 basis points to 7.75 per cent from 7.85 per cent earlier, the bank said. Also Read - SBI Board To Mull Raising USD 2 Billion Via Bonds In FY22 | Check Details Here
This is 10th consecutive cut in MCLR by the bank in the current fiscal. Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 per cent each. Three-month MCLR has been revised to 7.50 per cent from 7.65 per cent. The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95 per cent and 8.05 per cent, respectively. The rates became effective from March 10. On Monday, another state-run lender Union Bank of India had announced cut in its MCLR by 10 basis points across all tenors, effective March 11. This is the ninth consecutive rate cut announced by the Mumbai-based bank, since July 2019. The bank has cut its one-year MCLR to 8 per cent from 8.10 per cent. The overnight MCLR has been revised to 7.55 per cent, while the new one month rate stands at 7.60 per cent, the bank had said.