State Bank of India Cuts Benchmark Lending Rate by 15 bps

Current Context: State Bank of India (SBI) cuts its Marginal Cost of Funds based Lending Rate (MCLR) by 15 basis points (bps) across all tenors.

• It also reduced interest rates on retail term deposits by 20 bps for a tenor of up to three years
• With the newly announced cut, the MCLR (Marginal Cost of Funds based Lending Rate) reduced to 7.25%, from 7.40% with effect from 10 of May.
• Also, SBI introduced a new product called ‘SBI Wecare Deposit’ to safeguard the interests of senior citizens in the current falling rate regime.
• This product will earn senior citizens 80 bps higher interest rate than the rate applicable for the general public (30 bps extra premium). This additional premium will not be payable in case of premature withdrawal of such deposits.
• For retail TD of a tenor below five years, senior citizens will continue to earn 50 bps higher than the rate applicable for the general public.

Static Part: 

• HQ of SBI: Mumbai
• Chairman of SBI: Rajnish Kumar

Question:

Q.1 Which bank recently cut the benchmark lending rate by 15 bps?
a. Bank of Baroda
b. Punjab National Bank
c. State Bank of India
d. IDBI Bank