The country's largest lender, State Bank of India on Wednesday said it has reduced its fixed deposit rates for certain tenures and the marginal cost of funds-based lending rates (MCLR) across various tenures.
Making it a second reduction in a month, the public sector bank has reduced retail term deposits (less than Rs 2 crore) by 10 to 50 basis points for some tenures.
Fixed deposits (FDs) maturing between 7 days and 45 days will offer an interest rate of 4 per cent as against 4.50 per cent earlier.
Interest rates on FDs maturing in one year and above have been reduced by 10 basis points.
One-year to less than two-year tenure FDs will earn an interest rate of 5.90 per cent against 6 per cent earlier.
FDs of similar tenure will fetch an interest rate of 6.40 per cent instead of 6.50 per cent for senior citizens.
The bank has also reduced interest rates on bulk term deposits (Rs 2 crore and above) by 15 basis points for 180 days and above tenures.
FD rates in the bulk category for a tenure of one-year and above will earn 4.60 per cent instead of 4.75 per cent.
In February, the bank had slashed term deposit rates by 10-50 basis points in the retail segment and 25-50 basis points in the bulk segment.
Further, the one-year marginal cost of fund-based lending rate (MCLR) has been reduced by 10 basis points, to 7.75 per cent from 7.85 per cent earlier, the bank said.
This is the 10th consecutive cut in MCLR by the bank in the current fiscal.
Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 per cent each. The three-month MCLR has been revised to 7.50 per cent from 7.65 per cent.
The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95 per cent and 8.05 per cent, respectively.
The rates became effective from March 10.
On Monday, another State-run lender, Union Bank of India, had announced a cut in its MCLR by 10 basis points across all tenures, effective March 11.
This is the ninth consecutive rate cut announced by the Mumbai-based bank, since July 2019.
The bank has cut its one-year MCLR to 8 per cent from 8.10 per cent.
The overnight MCLR has been revised to 7.55 per cent, while the new one month rate stands at 7.60 per cent, the bank had said.
Photograph: Rupak De Chowdhury/Reuters.