New Delhi: India’s largest lender State Bank of India (SBI) on Monday slashed its MCLR (Marginal Cost of Funds based Lending Rate) on loans across all tenors by 10 basis points. Besides, it has also reduced interest rates on term deposits across all maturities by up to 25 basis points. The latest revision will come into effect from September 10, Tuesday.

Issuing a press release, the SBI stated that it will reduce interest rates by 10 basis points (bps) across all tenors with effect from tomorrow, i.e., September 10. (1 basis point = 0.01%). Following the rate cut, the one-year MCLR would come down to 8.15 percent a year from 8.25 percent.

This is SBI’s fifth consecutive cut in MCLR in FY 2019-20. Last month, hours after the Reserve Bank of India (RBI) lowered its repo rate, the SBI had announced a reduction in its MCLR by 15 basis points across all tenors.

Apart from SBI, other banks including Axis Bank, Oriental Bank of Commerce,Central Bank of India, IDBI Bank and IDFC First Bank have been cutting interest rates on loans.