In order to provide a great advantage to its old and reliable customers, state bank of India, India’s largest lender, has reduced its base rate. SBI base rate has been cut sharply to 9.1 percent from the 15 basis points.
As SBI cuts base rate, the new base rate is active from the 1st of April, 2017.
As per the estimates, of the total number floating rate loans, 30-40% of them are associated to MCLR (Marginal Cost of Lending Rate) system. The remaining are still associated with the SBI base rate. If we look till the September quarter, 15% of home loan of SBI was connected to the SBI MCLR. On the other hand, 40% of the overall book of loan is connected to the new SBI MCLR system.
The marginal cost of lending rate had already been reduced sharply by SBI in January which remained stagnant while SBI cut base rate. The marginal rate remains untouched at 8% and the two-year rate is 8.1%.
SBI’s overall growth was as follows-
• Rate of Growth of retail book was at 18% when the December quarter ended.
• Rate of Growth of home loan book was at 18.32%.
• Rate of Growth of auto loan book was at 19.9%.