After RBI: SBI announced cut in fixed deposit rates, home
After RBI: SBI announced cut in fixed deposit rates, home:
SBI announced cut fixed deposit: After the RBI announcement on monetary policy. India’s largest public sector bank SBI has decided to cut the lending rates on —
- Making home
- Auto loans
Sbi also decided to cut its fixed deposit(FD) rates. Based on MCLR SBI announced 5bps across all tenors that effect from February 10th.
After the rate revision today, the one-year MCLR comes down to 7.85% per annum from 7.90% per annum.
“This is the ninth consecutive reduction on MCLR by SBI in FY 2019-20”, said by the officials in a statement.
Home loan rates expected to fall further as SBI said, “the impact of recent RBI policy measures and reduction in deposit rates will reflect in the next review of MCLR”.
The monetary policy review on Thursday, the RBI kept its repo rate unchanged. But, it announced many measures to boost credit, and interest rates further.
The RBi temporarily removed the cash reserve ratio(CRR). which the bank requires to set aside 4% of their deposits– for every new retail loan made to finance automobiles, homes, and to small businesses till 31st July.
The central bank also mentioned that it will now conduct one-year and three-year term REPO auctions to inject up to ₹1 trillion into the banking sector.
SBI also cut its fixed deposit rates by 10-50 bps and also slashing bulk term deposit rates. This move will increase the surplus liquidity into the system.
SBI is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. As of December 31, 2019, the bank has a deposit base of over ₹31 lakh crore.
MCLR rates are based on the bank’s own cost of funds. If your home loan is linked to SBI’s MCLR rate, the latest cut may not bring down your EMIs immediately. MCLR-based loans typically have a one-year reset clause