Overnight MCLR rates are 7.95% as per SBI website. In one month, three MCLRs are at 8.10 levels. The six-month MCLR is 8.40 percent. One year MCLR is at 8.50%, two year and three year MCLR is at 8.60% and 8.70% respectively.
Interest rates on domestic retail term deposits have been increased from 5 to 25 bps. The interest rate is 6.80% for deposits up to Rs 2 crore for one year to less than two years. MCLR rates have been increased to 7% from two years to less than three years. Here an increase of 5 bps has been made. The rate of interest is 6.50% on deposits with a tenure of more than three years. It was earlier 6.25%.
The bank’s credit growth has been steadily improving despite rising interest rates. In the fortnight ended January 27, 2023, credit showed a rise of 16.3%. This reflected the increase in retail demand and strong growth in NBFCs. If interest rates rise further, investment interest is likely to rise accordingly.
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