New Delhi, Nov 9 (KNN) India's largest public sector bank State Bank of India (SBI) has announced cut in deposit as well as lending rates with effect from November 10.

SBI on Friday cut its Marginal Cost of Funds based Lending Rate (MCLR) by 5 basis points across all tenors. The bank also revised in fixed deposit rates (FD) rates by 15 basis points for deposits of one year to less than two years maturity.

SBI has become the second bank in less than a week to announce lending rate cut. Private bank HDFC reduced MCLR rate by 10 basis points effective November 7, 2019.

The one year MCLR has come down to 8 per cent per annum from 8.05 per cent per annum with effect from November 10, 2019.

Banks usually link one-year MCLR with retail loans such as home and auto loans. SBI also slashed bulk deposit rates by 30-75 bps across tenors. The bank cited adequate liquidity in the system for lowering FD rates.

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