SBI cuts lending rate by 90 bps; home, auto loans to become cheaper

After the move, its MCLR fell to 7.75% from 8.65%, while 3-yr loan rates will now be 8.15%

State Bank of India, the country's biggest lender by assets, said on Sunday it had cut its lending rates by 90 basis points for maturities ranging from overnight to three-year tenures, after experiencing a surge in deposits.

After the move, its so-called overnight marginal cost of funds-based lending rate (MCLR) fell to 7.75% from 8.65%, while three-year loan rates will now be 8.15% from 9.05% previously.

Lending rates were also cut across other maturities effective Sunday.

Banks have received an estimated Rs 14.9 lakh crore ($219.30 billion) in old 500, and 1,000 rupees notes from depositors since the government in Nov. 8 unexpectedly