State Bank of India cuts Fixed Deposits, home loan interest rates

New Delhi : State Bank of India (SBI) has announced reduction of 10 basis points in its marginal cost-based lending rate or MCLR. It also reduced interest rates on term deposits across all maturities by up to 25 basis points.

This comes after the Reserve Bank of India (RBI) recently reduced 1.1 percentage point in the repo rate - the key interest rate at which it lends short-term funds to commercial banks - so far this year.

From September 10, SBI said its one-year MCLR will be 8.15 per cent per annum. 

SBI cut interest rates applicable to retail term deposits by 20-25 bps and bulk term deposits by 10-20 bps across tenors, according to a statement.

SBI claimed that the move is in accordance to realign the falling interest rates.

The government and RBI have pushed for better transmission of rate cuts at a time when economic growth in the country has slumped to a six-year low. The central bank has time and again stressed on the need for commercial banks to pass on the benefit of interest rate cuts to consumers.