SBI gives new year gift to borrowers: Base rate cut by 30bps to 8.65%
The State Bank of India (SBI) reduced the base rate and benchmark prime lending rates (BPLR) by 30 basis points each, that is likely to benefit atleast 80 lakh customers on the old pricing regime. The decision came on Monday. 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. However the one-year MCLR of the bank stands unchanged at 7.95 per cent. The new rates will be effective from January 1 2018, 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. "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 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.
