SBI cuts lending rate by 90 bps

A day after Prime Minister Narendra Modi asked banks to priorities lending towards poor and lower middle class, country's largest lender SBI  cut benchmark interest rate across various maturities by 0.9 per cent. In a statement, the bank has reduced marginal cost of funds based lending rate (MCLR) by 0.9 per cent from 8.90 per cent to 8 per cent for 1-year tenure.

The new



interest rate for other tenures including one month, three months and six months has been reduced by 0.9 per cent. MCLR has been reduced by 0.9 percentage points to 8.10 per cent for two years and 8.15 per cent for three years.Last week, its subsidiary State Bank of Travancore had announced reduction in the lending rate and another public lender IDBI too reduced it by up to 0.6 per cent.