SBI passes on entire 75 bps repo rate cut to borrowers
Mumbai, March 17, 2020
State Bank of India (SBI) today said that it would pass on the entire 75 basis points cut in the policy repo rate announced by the Reserve Bank of India (RBI) earlier in the day to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR).
With this revision, SBI’s EBR and RLLR will come down by 75 bps, with effect from April 1 1, 2020, a press release from SBI said.
The EBR has been reduced to 7.05% p.a from 7.80% p.a. and the RLLR has been reduced to 6.65% p.a from 7.40% p.a, it said.
Consequently, EMIs on eligible home loan accounts (linked to EBR/RLLR) get cheaper by around Rs 52 per 1 lakh on a 30-year loan.
The release said that, in view of adequate liquidity in the system and the additional liquidity measures announced in today’s monetary policy, SBI has realigned its interest rate structure on deposits with effect from March 28, 2020.
Retail TD interest rates have been reduced by 20 bps to 50 bps across tenors while Bulk TD interest rates have been reduced by 50 bps to 100 bps across tenors, it said.
A decision on Marginal Cost of Funds-based Lending Rate (MCLR) would be taken when the Asset-Liability Committee (ALCO) meets in April, the release said.
The impact of recent RBI policy measures and reduction in the bank’s deposit rates will be reflected in the next review of MCLR, it added.