Mumbai: Within hours of a steeper 35 basis points reduction in the repo rates by the Reserve Bank to 5.4 percent in its fourth consecutive steps, the largest lender State Bank announced a 15 basis points reduction in its lending rates, effective August 10 across all tenors.

The new one-year MCLR or the marginal cost based lending rates will come down to 8.25 per cent from 8.40 per cent annum, the lender said in a statement.

With this reduction, the bank's effective repo-linked lending rate (RLLR) for cash credit accounts (CC)/ overdrafts (OD) customers will be revised downwards to 7.65 percent, from September 9.

After this cut, home loans of the bank have become cheaper by 35 bps since April. The bank is offering a repo linked home loans from July 1, 2019.