Mumbai, Nov 1 - State Bank of India (SBI) has cut is benchmark lending rate by 0.05% 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% from 8%, the SBI website said.
The MCLR on overnight borrowings has been reduced to 7.70% from 7.75%, while the rate for three-year tenures has been lowered from 8.15% to 8.10%.
On Tuesday, another public sector lender, the Kolkata-headquartered Allahabad Bank reduced their MCLR by 0.15% across maturities. The reduction has brough down the one-year MCLR to 8.30%, as against 8.45%, 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%, reiterating its call for better transmission by the banks of earlier rate cuts made by the central bank.