SBI is 1st to take RBI Guv's cue , lowers lending rates by 5 bps

Mumbai: A day after Reserve Bank governor Shaktikanta Das said he expects faster transmission of the three successive repo rate cuts, State Bank lowered its lending rates by 5 basis points across all tenors.

The new rates, effective Wednesday, is the third reduction by SBI in this financial year havng cut the rates by 5 bps each in April and May, while its home loan rates has come down by 20 bps during this period.

The one-year marginal cost of funds-based lending rate (MCLR) or minimum lending rate, to which all loans are linked, has been cut to 8.40 percent from 8.45 percent, the nation's largest lender said in a statement Tuesday.

From July 1, the bank had also introduced repo-linked home loan products.

Talking to reporters after the customary post-budget meeting with the finance minister on Monday, Das had said after delivering three back-to-back rate cuts to the tune of 75 bps, RBI expects a quicker transmission by banks.

After the 25 bps repo rate cut in the June policy, Bank of Maharashtra, Corporation Bank, Oriental Bank and IDBI Bank had reduced their MCLR by 5-10 bps.