As a gift in the beginning of the new financial year, SBI has cut its base rate by 15 basis points to 9.1 per cent which will be effective from April 1, 2017. The recent change will surely benefit the old customers of the bank.
SBI has made no changes to its marginal cost of lending rates (MCLR) after January. Reportedly, the bank already cut the marginal cost of lending rates linked to the home loan in January reducing it to 8 per cent for one year and 8.1 per cent for two years.
The estimates show that the only 30 to 40 per cent of total floating rate loans are linked to MCLR whereas the rest are linked to the base rate. In fact at the end of the third quarter of 2016-17, a total of 13,000 crore (only 15 per cent) of SBI’s home loan book was linked to MCLR and 40 per cent are linked to the new MCLR system.
As per the growth of SBI, the bank’s retail book, the home loan book and the auto loan book expanded at a rate of 18 per cent, 18.32 per cent and 19.9 per cent respectively at the end of December quarter.
Source: ET Realty