MUMBAI - The State Bank of India (SBI), the nation’s largest lender, has maintained its Marginal Cost of Funds-based Lending Rate (MCLR) unchanged since July 2023, ensuring stable Equated Monthly Installments (EMIs) for borrowers. Today, the bank reiterated the various MCLR rates: overnight at 8.00%, one-month and three-month at 8.15%, six-month at 8.45%, one-year at 8.55%, two-year at 8.65%, and three-year at 8.75%.
The announcement comes in the wake of the Reserve Bank of India's (RBI) decision in October to hold the repo rate at 6.5%, influencing lending rates across the banking sector.
SBI continues to lead the market with a significant presence in home and auto loan sectors, holding a commanding market share of 33.4% in home loans and 19.5% in auto loans. The bank's home loan portfolio has exceeded Rs. 6.53 lakh crore, assisting over 30 lakh families in acquiring homes.
The bank's extensive network is a cornerstone of its operations, featuring 22,405 branches and 65,627 ATMs/ADWMs across India. SBI has also made significant strides in digital banking with a robust user base that includes 117 million Internet banking users and 64 million mobile banking users. Its digital platform YONO has been pivotal to this strategy, contributing to 63% of new savings account openings in the fiscal year 2023.
With these stable MCLR rates, SBI aims to support its customers by providing predictable loan servicing costs while reinforcing its stronghold in India’s banking landscape through both traditional and digital channels.
InvestingPro Insights
As the State Bank of India (SBI) continues to maintain its Marginal Cost of Funds-based Lending Rate (MCLR), it's worth noting some key data and tips from InvestingPro. According to real-time data, SBI's market cap stands at 105.29M USD, with a negative P/E ratio of -90.36. The bank has seen a revenue growth of 5.67% over the last twelve months as of Q2 2023, bringing in 6.17M USD during this period.
InvestingPro Tips highlight that SBI has been experiencing accelerating revenue growth and consistently increasing earnings per share. This suggests a strong financial performance despite the challenging market conditions. On the other hand, the bank has been quickly burning through cash, which might be a concern for investors. Additionally, SBI has managed to raise its dividend for three consecutive years, which is a positive sign for those interested in dividend returns.
For a more comprehensive understanding of SBI and access to additional tips, consider exploring InvestingPro's product offerings. They provide a wealth of insights with more than 15 additional tips for SBI alone, which can help you make informed investment decisions.
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