SBI declines the lending rates by 10 bps, will come into effect from December 10

NP1550 09/12/2019 13:16 PM

New Delhi. The State Bank of India has declined the lending rates across all tenors by 10 basis points on Monday. The largest public lender SBI has mentioned that the marginal cost based lending rates has been reduced by 10 bps across all tenors and added that the one-year MCLR will now come down to 7.90 per cent from 8 per cent.


The new lending rates will be effective from December 10, revealed the bank. The bank's release also hinted that this is the 8th consecutive reduction in MCLR in this financial year. Notably, the bank has not reduced interest rates on its repo-linked loans and it has not reduced its fixed deposit rates as well. RBI Governor Shaktikanta Das stated that the review committee did not go for another rate cut as it wants more clarity on the fiscal situation and also wants better transmission of its previous rate cuts. 


The development comes after RBI's Monetary Policy Committee (MPC) decided to keep the key lending rate unchanged after five consecutive rate cuts since January 2019. As a result, the key repo rate continues to remain unchanged at 5.15 per cent. RBI Governor has however mentioned that the Central Bank will maintain an accommodative stance, allowing it room for rate cuts in future. 




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