SBI cuts MCLR by 5 bps across tenors

The country's largest lender State Bank of India (SBI) on Friday announced 5 basis points (bps) reduction in its MCLR across tenors, effective February 10. This is the ninth consecutive cut in MCLR by the bank in current fiscal. With this reduction, the one-year marginal cost of funds-based rate (MCLR) has come down to 7.85 per cent per annum from 7.90 per cent, a bank statement said. The reduction in MCLR by the bank comes a day after the Reserve Bank of India (RBI) left repo rate unchanged at 5.15 per cent, but announced long-term repo operation for up to Rs 1 lakh crore, making cost of funds cheaper for banks. Bank of India also said it has reduced MCLR by 10 bps for maturities up to 6 months.