Mumbai Nov 1 (IANS) State Bank of India (SBI) has cut is benchmark lending rate by 0.05 per cent across maturities effective from Wednesday according to an announcement by the state-run lender.
The reduction in marginal cost of funds based lending rate (MCLR) by the largest Indian bank last made on January 1 this year has thus brought its MCLR down to 7.95 per cent from 8 per cent the SBI website said.
The MCLR on overnight borrowings has been reduced to 7.70 per cent from 7.75 per cent while the rate for three-year tenures has been lowered from 8.15 per cent to 8.10 per cent.
On Tuesday another public sector lender the Kolkata-headquartered Allahabad Bank reduced their MCLR rate by 0.15 per cent across maturities. The reduction has brough down the one-year MCLR to 8.30 per cent as against 8.45 per cent effective November 1.
At its fourth bi-month monetary policy review here earlier in the month the Reserve Bank of India kept its key interest rate unchanged at 6 per cent reiterating its call for better transmission by the banks of earlier rate cuts made by the centrl bank.
--IANS
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