Mumbai, Oct. 10 -- Less than a week after the Reserve Bank of India (RBI) lowered policy rates, the State Bank of India (SBI) on Wednesday cut lending and deposit rates citing adequate liquidity situation.

The country's largest bank reduced the marginal cost of funds based lending rate (MCLR) by 10 basis points (bps) across tenures. The one-year MCLR, therefore, stands reduced to 8.05%. The new rate may not be applicable to existing home loan borrowers immediately unless these loans are set for a one-year reset clause.

SBI also cut interest rates on its saving accounts for balance below 1 lakh to a historic low of 3.25%. The new interest rates on savings deposits will be effective from November 1. The bank also reduced interest rates on r...