News

Base Rates Reduced By SBI While Keeping MCLR Untouched


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%.

Team iPropUnited

Share
Published by
Team iPropUnited

Recent Posts

Land deals surge by 48% in 2024, with Delhi-NCR taking the lead

Over 40 land deals were recorded in the Delhi-NCR micro-market, with Gurugram contributing to 60%…

3 days ago

Personal Finance Tips for Young Professionals

As a young professional, building a strong financial foundation early in your career can set…

1 week ago

The Importance of ESG (Environmental, Social, and Governance) in Modern Business

In recent years, ESG (Environmental, Social, and Governance) has become a critical framework for evaluating…

2 weeks ago

Why Premium Housing is Gaining Popularity Among Millennials

In recent years, the demand for premium housing has seen a significant rise among millennials,…

2 weeks ago

Year-End 2024: Industrial & Logistics Sector Drives 10% Growth in Private Equity Investments

Data reveals that the Indian real estate sector attracted $4.3 billion (Rs 35,600 crore) in…

3 weeks ago

Why Tier-2 and Tier-3 Cities are the Future of Indian Real Estate

India’s real estate market is undergoing a profound transformation, with Tier-2 and Tier-3 cities emerging…

3 weeks ago

This website uses cookies.