Mumbai: country’s largest lender SBI on Sunday cut benchmark interest rate across various maturities by 0.9 per cent, effective from January 1. this move is expected to be shortly followed by other banks.
A day after Prime Minister Narendra Modi asked banks to priorities lending towards poor and lower middle class,The bank has reduced marginal cost of funds based lending rate (MCLR) by 0.9 per cent from 8.90 per cent to 8 per cent for 1-year tenure, State Bank of India (SBI) said in a statement
On Saturday, the Prime Minister asked banks to pay special attention towards poor and middle class.
“While respecting the autonomy of banks, I appeal to them to move beyond their traditional priorities and keep the poor, lower middle class and middle class at the focus of their
activities,” he had said.
“India is celebrating the centenary of Pandit Deendayal Upadhyay as Garib Kalyan Varsh. Banks should also not let this opportunity slip. They should take appropriate decisions in public interest promptly,” he had said.
Flushed with funds due to demonetisation, the new interest rate for other tenures including one month, three months and six months has been reduced by 0.9 per cent.
MCLR has been reduced by 0.9 percentage points to 8.10 per cent for two years and 8.15 per cent for three years.