SBI cuts lending rate by 90 bps; others to follow suit

TIL Desk Business/New Delhi/ A day after Prime Minister Narendra Modi asked banks to priorities lending towards poor and lower middle class, country’s largest lender SBI today cut benchmark interest rate across various maturities by 0.9 per cent, a move expected to be shortly followed by other banks.

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. Yesterday, 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.