Top two lenders in the country, State Bank of India (SBI) and ICICI Bank, announced a cut of 0.15% and 0.10% in their lending rates, respectively, under a new system of computation, signalling a further dip in borrowing costs ahead of the busy season.

Private sector lender ICICI Bank was the first to announce a cut of 0.10% in its marginal cost of funds based lending rate (MCLR) across tenors, which was followed by a similar move by the country’s largest lender SBI, but of a larger measure of 0.15%.

Under the revised rates, the one-year MCLR which determined a slew of products including home loans for SBI stands at 8.90%, while the same for ICICI Bank are at 8.95%.

The revised rates are effective from November 1 in case of both the banks.

SBI has kept the overnight MCLR, which is the most aggressive offering, at 8.65%, while the one month is at 8.75%.

The announcements come after repeated displeasure shown by the regulator for not passing on the benefits of cuts to borrowers and give a boost to the sagging economic growth.

Under the revised rate structure, the one-year MCLR — which is used for calculating the rate of interest on home loans — will come down to 8.95%.

The overnight and one-month MCLR will be 8.75%, while the three-month MCLR has been fixed at 8.85% and six months at 8.90%.

The MCLR was introduced from April this year as a transparent and effective alternative by the RBI, after banks refused to pass on the benefits of its rate cuts to the borrowers.