SBI cuts MCLR by 25 bps across all tenors from June 10

The Bank has also cut its Base Rate by 75 bps, from 8.15% to 7.40% w.e.f June 10, 2020.

Jun 09, 2020 08:06 IST India Infoline News Service

State Bank of India
Country’s largest lender State Bank of India (SBI) on Monday has announced the reduction in its MCLR by 25 bps across all tenors. The one-year MCLR comes down to 7% p.a from 7.25% p.a. with effect from June 10, 2020. This is the thirteenth consecutive reduction in bank’s MCLR.

The Bank has also cut its Base Rate by 75 bps, from 8.15% to 7.40% w.e.f June 10, 2020.

Additionally, SBI passes on the entire 40 bps Repo rate cut (announced by RBI on 22nd May 2020) to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR). As such, SBI’s EBR & RLLR comes down by 40 bps, as under:
  • EBR reduced to 6.65% p.a from 7.05% p.a. w.e.f July 1, 2020
  • RLLR reduced to 6.25% p.a from 6.65% p.a, w.e.f June 1, 2020
Consequently, EMIs on eligible home loan accounts linked to MCLR will get cheaper by approx. Rs421 and those linked to EBR/RLLR will get cheaper by around Rs660, for a 30 year’s loan of Rs25 lakh.

On last Friday, SBI posted a net profit was up 327.10% to Rs3,581cr in Q4FY20 against Rs838cr of the same period in the previous year. Meanwhile, net interest income (NII) came in at Rs22,767cr sequentially down from Rs22,954cr of Q4FY19. Net Interest Margin (NIM) expanded to 3.19% in Q4 from 2.95% in Q4FY19.

The bank has also trimmed down its savings deposits interest rates by 5 bps and the new rates have come into effect from May 31, 2020, onward. Now, SBI's saving deposits account having balance up to Rs1 lakh will earn interest of 2.70%. Earlier, the interest rate was 2.75%.

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