Top two lenders in the country, State Bank of India (SBI) and ICICI Bank, announced a cut of 0.15 per cent and 0.10 per cent in their lending rates respectively under a new system of computation, signalling a further dip in borrowing costs ahead of the busy season.
Private sector lender ICICI Bank was the first to announce a cut of 0.10 per cent in its marginal cost of funds based lending rate (MCLR) across tenors, which was followed by a similar move by the country’s largest lender SBI, but of a larger measure of 0.15 per cent.
Under the revised rates, the one-year MCLR which determined a slew of products including home loans for SBI stands at 8.90 per cent, while the same for ICICI Bank are at 8.95 per cent.
The revised rates are effective from November 1 in case of both the banks.
SBI has kept the overnight MCLR, which is the most aggressive offering, at 8.65 per cent, while the one month is at 8.75 per cent.
The announcements come after repeated displeasure shown by the regulator for not passing on the benefits of cuts to borrowers and give a boost to the sagging economic growth.
They also come ahead of the crucial “busy season” in the second half of the fiscal which sees a spurt in loan demand.
Under the revised rate structure, the one-year MCLR — which is used for calculating the rate of interest on home loans — will come down to 8.95 per cent.
From Agencies, Feature image courtesy livemint
