State Bank of India or SBI, the country’s largest lender on Wednesday announced a reduction in its benchmark lending rates across shorter tenors. SBI said its marginal cost of funds-based lending rate (MCLR) will be reduced by 5-10 basis points (5-10 percentage point). The new rates will take effect on July 10. According to the SBI press release, “This is the 14th consecutive reduction in the Bank’s MCLR. With this revision, SBI’s MCLR upto 3 months tenor comes down to 6.65 per cent p.a., which is on par with the External Benchmark based Lending Rate(EBLR) of SBI.”
From July 10, the MCLR will stand reduced to 6.65 percent for the three-month tenor, according to SBI’s statement. The move marks the 14th consecutive reduction in the key lending rates by SBI.In June, the bank slashed its key lending rates, the MCLR and the external benchmark rate (EBR), by 25 basis points and 40 basis points respectively, across tenors. The one-year MCLR had come down to 7 per cent per annum.