GET Stock QuotesNews18 APP
News18 English
»
1-min read

SBI Lowers Base Rate by 30 Basis Points, to Benefit 80 Lakh Customers

The bank, however, did not change the marginal cost of funds-based lending rate (MCLR) which would have brought down the cost for all borrowers.

PTI

Updated:January 1, 2018, 5:09 PM IST
facebookTwittergoogleskypewhatsapp
SBI Lowers Base Rate by 30 Basis Points, to Benefit 80 Lakh Customers
Image for representation.
Mumbai: The State Bank of India on Monday reduced the base rate and benchmark prime lending rates (BPLR) by 30 basis points each, which will benefit nearly 80 lakh customers on the old pricing regime.

The nation's largest lender revised down the base rate to 8.65 per cent for existing customers from 8.95 per cent, while the BPLR is down from 13.70 per cent to 13.40 per cent.

The bank, however, did not change the marginal cost of funds-based lending rate (MCLR) which would have brought down the cost for all borrowers. The one-year MCLR of the bank stands unchanged at 7.95 per cent.

The new rates will be effective Monday, the bank said in a statement.

"We had done the rate review in the last week of December, and based on whatever deposits rates we had, our base rate was brought down by 30 basis points to 8.65 per cent now," managing director for retail and digital banking, PK Gupta, told reporters in a conference call.

Nearly 80 lakh customers who are on the old lending rate regimes and have not moved to MCLR, will be benefited from this reduction.

Banks review MCLR on a monthly basis, while the base rate revision happens once a quarter.

"The MCLR was reduced earlier also as the gap between MCLR and base rate had become quite wide. This move will help in reducing that gap," he said.

The revision will ensure transmission of reduction in the policy rates in the recent past, he said.

The bank also extended its ongoing waiver on home loan processing fees till the end of this March for new home loan customers and other customers looking to switch their existing loans to SBI.

Also Watch

| Edited by: Aakarshuk Sarna
Read full article
Most Active
Company Price Change %Gain
SBI 263.65 +9.75 +3.84
Strides Shasun 403.15 +11.10 +2.83
Tata Steel 540.40 -36.40 -6.31
PC Jeweller 198.00 +6.30 +3.29
Tata Motors 310.85 +3.15 +1.02
Company Price Change %Gain
SBI 263.70 +9.55 +3.76
Zee Entertain 554.50 -10.85 -1.92
Strides Shasun 404.00 +11.80 +3.01
PC Jeweller 198.00 +7.05 +3.69
Vedanta 254.85 -14.65 -5.44
Top Gainers
Company Price Change %Gain
SBI 263.65 +9.75 +3.84
Tech Mahindra 699.25 +12.85 +1.87
Cipla 532.60 +8.60 +1.64
ICICI Bank 294.15 +3.85 +1.33
NTPC 167.25 +2.10 +1.27
Company Price Change %Gain
SBI 263.70 +9.55 +3.76
ICICI Bank 293.75 +3.00 +1.03
NTPC 167.25 +2.25 +1.36
Tata Motors 310.75 +3.00 +0.97
Sun Pharma 456.80 +3.80 +0.84
Top Losers
Company Price Change %Gain
HPCL 286.10 -25.75 -8.26
Tata Steel 540.35 -36.45 -6.32
BPCL 372.80 -24.80 -6.24
Vedanta 254.50 -15.45 -5.72
ONGC 177.35 -7.85 -4.24
Company Price Change %Gain
Tata Steel 540.15 -37.05 -6.42
ONGC 177.50 -6.80 -3.69
Dr Reddys Labs 1,952.00 -61.75 -3.07
IndusInd Bank 1,860.00 -50.25 -2.63
ITC 273.85 -4.95 -1.78