INSUBCONTINENT EXCLUSIVE:
SBI fixed deposit interest rates: The bank cut the interest rates on retail term deposits by 20-25 bpsState Bank of India (SBI) on Monday
announced a reduction in its marginal cost-based lending rate or MCLR by 10 basis points
It also lowered interest rates on term deposits across all maturities by up to 25 basis points
The move marked the fifth consecutive reduction in MCLR by the country's largest bank so far this financial year
The cut in interest rates comes on the back of the Reserve Bank of India (RBI)'s 1.1 percentage point reduction in the repo rate - the key
retail term deposits by 20-25 bps and bulk term deposits by 10-20 bps across tenors, according to a statement.SBI said the action was to
realign its interest rates on term deposits "in view of the falling interest rate scenario".The government and RBI have pushed for better
transmission of rate cuts at a time when economic growth in the country has slumped to a six-year low
The central bank has time and again stressed on the need for commercial banks to pass on the benefit of interest rate cuts to consumers.Last
week, the Reserve Bank of India ordered all banks to link certain loans to the external benchmark-based interest rates from October 1,
saying banks had not satisfactorily passed on the benefit of recent policy rate cuts to consumers.Bankers and analysts say the RB's move
to compel lenders to link all new floating rate retail loans to external benchmarks is unlikely to achieve the intended goal of reducing
interest rates sharply for consumers anytime soon.Get Breaking news, live coverage, and Latest News from India and around the world on
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