SBI cuts lending rates by 10 bps, retail loans to get cheaper
The State Bank of India (SBI) on Wednesday announced lowering its marginal cost of funds based lending rate (MCLR) by 10 basis points across all tenors to 8.05 per cent from October 10. The MCLR cut will make home and other retail loans cheaper for the existing borrowers.
 
The bank's one-year MCLR has been brought down from 8.15 per cent per annum to 8.05 per cent per annum. This is the sixth cut in MCLR in FY 2019-20 and it comes days after the Reserve Bank of India (RBI) lowered the repo rate by 25 basis points. 
 
"In view of the festival season and to extend the benefit to customers across all segments, the SBI has reduced its MCLR by 10 bps across all tenors," the country's largest state lender said in a statement. 
 
MCLR refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. MCLR rates are based on a bank's own cost of funds. So if an existing home loan is linked to the SBI's MCLR rate, the latest cut may not bring down its EMIs immediately. MCLR-based loans generally have a one-year reset clause. 
 
To new borrowers, the SBI now also offers a repo-rate linked home loan scheme. Under this scheme, the loan rate gets adjusted as and when the RBI revises its benchmark rate. 
 
The SBI charges a spread of 265 basis points over the RBI's repo rate (currently at 5.15 per cent) to calculate its external benchmark-based lending rate. The bank also charges a premium for effective home loan rate to keep its margins intact.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User

    PMC Bank ex-chairman Waryam Singh in police custody till Oct 9
    A Mumbai Court on Sunday remanded to police custody till October 9 the former Chairman of the crisis-hit Punjab & Maharashtra Cooperative Bank Ltd., S. Waryam Singh, officials said.
     
    Singh, who was nabbed by the Economic Offences Wing (EOW) of Mumbai Police from his hiding place in Mahim late on Saturday, was produced before a magistrate court on Sunday.
     
    Police said that he will be interrogated for his prima facie involvement in the alleged Rs 4,335 crore fraud case concerning the Housing Development & Infrastructure Ltd. (HDIL).
     
    The 68-year old Singh was missing since the irregularities in the PMC Bank tumbled out two weeks ago, and was traced to a location in Mahim where he was in hiding and picked up.
     
    Hours before his arrest on Saturday, Singh created a flutter by sending a signed, type-written letter to the EOW DCP Parag Manere, stating that he planned to surrender before the EOW by evening and also willing to cooperate.
     
    However, the police team, which was already on watch outside his Andheri residence, quickly got cracking to flush him out of his hiding place near Mahim Church and arrested him.
     
    Singh is the third important arrest in the PMC Bank case after its missing Managing Director Joy Thomas was arrested on Friday in connection with the same case.
     
    Earlier, on Thursday, the police nabbed the HDIL Chairman and Managing Director - Rakesh Kumar Wadhwan and Sarang Wadhwan, respectively, and their assets worth Rs 3,500 crore frozen.
     
    These arrests followed the EOW registering a case last Monday against the PMC Bank and the HDIL for causing alleged losses worth Rs 4,335 crore to the bank between 2008 and 2019 in the Bhandup branch.
     
    The Mumbai Police FIR has named Thomas, Singh, the Wadhwans and other officials, and a Special Investigation Team has been formed to probe the case.
     
    On September 24, the RBI slapped six-month sanctions restraining the PMC Bank from carrying out a majority of its routine businesses, sparking huge panic among depositors and stunning the banking and corporate circles ahead of the festival season.
     
    Simultaneously, last Friday, the Enforcement Directorate (ED) entered the picture by launching separate investigation for money-laundering and carried out raids in six locations in Mumbai, besides making seizures of various movable assets of the HDIL top brass.
     
    ED sources said that an enforcement case investigation report, equivalent to a police FIR, was lodged following a complaint by PMC Bank's Manager (Recovery Dept.) claiming over 21,000 fictitious accounts were created to suppress the stressed loan accounts of the HDIL, flouting the Reserve Bank of India norms.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User

    PMC Bank: Joy Thomas, former MD, Arrested by Mumbai EOW
    The Economic Offences Wing (EOW) of Mumbai police on Friday arrested Joy Thomas, former managing director (MD) of Punjab and Maharashtra Cooperative (PMC) Bank. This is the third arrest in the Rs4355 crore PMC Bank scam. 
     
    On Thursday, the EOW had arrested Rakesh Kumar Wadhwan and his son Sarang, both promoters and directors Housing Development and Infrastructure Ltd (HDIL).
     
     Earlier this week, the EOW has registered a first information report (FIR) against senior officials of HDIL and PMC Bank. This included, PMC Bank's now-suspended Managing Director Joy Thomas, Chairman Waryam Singh and other executives. It also mentioned involvement of Sarang Wadhawan, the vice chairman and managing director of HDIL. 
     
    The FIR has been filed under Sections 409 (criminal breach of trust by a public servant or banker), 420 (cheating), and 465, 466 and 471 (related to forgery) of the Indian Penal Code along with 120 (b) (criminal conspiracy). 
     
    As per the complaint, the bank officials, between 2008 and 2019, deliberately violated banking norms and showed false profits to mislead the authorities, although the bank was actually incurring losses. 
     
    It also said that the bank also veiled the group's large exposure and non-performing assets (NPAs) from the Reserve Bank of India (RBI) by creating dummy accounts.
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    ramchandran vishwanathan

    2 weeks ago

    EOW , ED wake up only after the incident has happened . Where are they when the bank is conducting all. other businesses other than what's it's mandated for

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone