Public sector lender State Bank of India on Monday announced yet another reduction in lending rates by 10 basis points across tenors.
The new rates are effective from Tuesday, the lender said announcing the third rate reduction in the current fiscal year.
The one-year Marginal Cost of Funds based Lending Rate (MCLR), to which all the retail lending rates are linked to, has been reduced to 8.15% from 8.25% earlier.
It also slashed retail term deposit rates by 20-25 basis points and bulk term deposit rates by 10-20 basis points across tenors, effective Tuesday.
The lender attributed the falling interest rate scenario and surplus liquidity for realigning its interest rate on term deposits.