SBI cuts interest rates
Posted on: 17/Nov/2016 2:40:50 PM
State Bank of India, SBI, has announced that it will cut interest rates by 15 basis points , bps, on term deposits between one and three years.
Officials said, There could be more rate cut on deposits and loans. Meanwhile, private sector lender Axis Bank slashed its marginal cost of fund-based lending rate, MCLR, to price by up to 20 bps, in keeping with its stance to pass on the benefits of reduction in cost to customers. The MCLR cut will be applicable from 18 November. The bank is sitting on excess statutory liquidity ratio, SLR, of 5.5 per cent over minimum required by rules. It is not only because of large inflow of money into the banks after the Centres decision to scrap currency notes as legal tender. Slow credit growth is also a reason for the cut. So, there are challenges of deploying money. When a bank invests these excess funds into bond markets, returns are less as yields have fallen.
