India’s largest lender State Bank of India has lowered savings rates by 25 basis points (bps) to 2.75 per cent on all deposits. The bank cited adequate liquidity as its reason behind the decision.

The new rate will come into effect from April 15, 2020.

“In view of adequate liquidity in the system, SBI realigned its interest rates on Savings Bank Deposits, with effect from April 15, 2020,” SBI said on Tuesday.

The savings rate has been reduced to 2.75 per cent from 3 per cent, it said.

Along with this, the bank has also reduced the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors. With this latest cut, the annual MCLR has now come down to 7.40 per cent.

“The one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent per with effect from April 10, 2020,” it said in the statement.

It is the 11th consecutive MCLR cut in 2019-20, the bank said.

“EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around Rs 24.00 per 1 lakh on a 30 year loan,” SBI said.

On March 27, the national lender had cut its interest rates linked to external benchmarks by 75bps. It had also lowered its deposit rates between 20 and 100bps. The bank had said, the EBR has been reduced to 7.05 per cent per annum from 7.80 per annum, while RLLR to 6.65 per cent per annum from 7.40 per annum. This was after the Reserve Bank of India had cut its repo rate by 75bps to mitigate the challenges caused by the coronavirus pandemic.