Top two lenders in the country, State Bank of India (SBI) and ICICI Bank, announced a cut of 0.15% and 0.10% 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% 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%.
Under the revised rates, the one-year MCLR which determined a slew of products including home loans for SBI stands at 8.90%, while the same for ICICI Bank are at 8.95%.
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%, while the one month is at 8.75%.
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.