Within hours of a steeper 35 basis points reduction in the repo rates by the Reserve Bank to 5.4% 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% from 8.40% 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%, 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.