Moneycontrol BureauA day after Prime Minister Narendra Modi urged banks to take decisions keeping in mind the welfare of the poor, state-run SBI today slashed its key lending rate by 90 basis points (0.9 percent) across all maturities.The cut in the marginal cost of funds based lending rate (MCLR), among the biggest in recent years, is effective January 1, 2017.The bank has reduced marginal cost of funds based lending rate (MCLR) from 8.90 per cent to 8 per cent for 1 year tenure, SBI said in a statement. For overnight borrowings, the MCLR has been brought down to 7.75 percent from 8.65 percent. Similarly, the rates have been reduced for tenures of 3 months, 6 months, 2 years and 3 years. The rates have been revised lower as follows- 3 month MCLR - 7.90 percent from 8.80 percent 6 month MCLR - 7.95 percent from 8.85 percent 2 year MCLR - 8.10 percent from 9 percent 3 year MCLR - 8.15 percent from 9.05 percent SBI Chairman, Arundhati Bhattacharya welcomed PM's move of benefitting the lower income segments of the country. "Low cost housing should witness growth in the medium to long term. The government's commitment to a less cash society will also aid in reforming the tax structure for the better", she said.
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