SBI lowers MCLR-based lending rates by 10 bps across all one-year products; eighth consecutive interest reduction this fiscal

Mumbai: Country's largest lender State Bank of India on Monday announced the reduction in its marginal cost of fund-based lending rate (MCLR) by 10 basis points across all one-year products, effective Tuesday.This is the eighth consecutive cut in MCLR by the lender this fiscal.[caption id="attachment_5204511" align="alignleft" width="380"]

Representational image. Reuters[/caption]"To pass on the benefit of our falling cost of funds to customers, we have reduced MCLR by 10 bps across one-year maturity," a statement from the bank said.The new one-year MCLR has been cut to 7.90 percent from 8 percent.The reduction comes as the Reserve Bank of India (RBI) in a surprise move left the key policy rates unchanged last Thursday at 5.15 percent.Last month, SBI had reduced its MCLR by 5 basis points across all tenors, effective 10 November, and sharply slashed the deposits pricing between 15 and 75 basis points.In October also, SBI had announced the reduction in its MCLR rate by 10 basis points across all tenors.