SBI cuts MCLR by 5 bps across tenors

Country's largest lender, State Bank of India (SBI) announced a 5 basis points reduction in its MCLR across tenors, effective February 10.

This is the ninth consecutive cut in MCLR by the bank in the current fiscal.

With this reduction, the one-year marginal cost of fund-based rate (MCLR) has come down to 7.85 percent per annum from 7.90 percent, a bank statement said.

The reduction in MCLR by the bank comes a day after the Reserve Bank of India (RBI) left the repo rates unchanged at 5.15 percent but announced long-term repo operation for up to Rs 1 lakh crore, making cost of funds cheaper for banks.

SBI further said in view of surplus liquidity in the system, it has realigned its interest rate on retail term deposits (less than Rs 2 crore) and bulk term deposits (Rs 2 crore and above), effective February 10.