SBI decreases loan, FD rates
State Bank of India (SBI), the country’s largest state-run bank, has announced a reduction of 0.05% in MCLR, which will make the loan cheaper. This deduction will be applicable on the loan for all maturity periods. Along with this, the bank has also reduced interest on fixed deposits, which means that your profit will decrease. This deduction will be effective from 10 February.
The bank has cut MCLR for the ninth time this year. The bank said that after this deduction, the MCLR on the loan for one year has come down to 7.85%. The deduction is made a day after the Reserve Bank’s policy, in which there was no change in the repo rate. On Thursday, the Reserve Bank did not make any change in the repo rate, but the housing, auto sector as well as loans to small industries have been exempted from CRR till 31 July. This will save more cash with the banks, so that they will be able to give more loans to these sectors.
The central bank had retained it at 5.15, with no change in the repo rate, though announced a long-term repo for an amount up to Rs 1 lakh crore. This made it cheaper for commercial banks to raise loans for banks.
The bank has also changed the FD rates. SBI said that in view of the liquidity in the banking system, it has also changed the interest rates for retail deposits of less than Rs 2 crore and bulk deposits of more than Rs 2 crore. The rate of interest for retail FDs has been cut from 0.1 to 0.5 percent and in bulk deposits from 0.25 percent to 0.50 percent. The new rates are effective from 10 February.
