State Bank of India slashes minimum lending by 0.4%Business News

September 29, 2015 12:45
State Bank of India slashes minimum lending by 0.4%},{State Bank of India slashes minimum lending by 0.4%

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As soon as the Reserve Bank reduced in repo rate, State Bank of India (SBI), the country’s largest lender, has cut minimum lending or base rate by 0.4% to 9.3% with effect from 5 October 2015. This has set a trend for benevolent interest rate regime. It is likely for others to follow the largest lender in terms of the reduction.

Meanwhile, Andhra Bank also cut its base rate by 0.25% to 9.75% with effect from today. The reduction in the base rates makes all loans cheaper by at least 0.4%. This includes home, corporate and auto loans.

Arundhati Bhattacharya, Chairperson of SBI, said, “RBI has cut interest rate by 0.50 per cent, we have reduced it by 0.40 per cent.”

“We will definitely keep looking at ways and means of bringing down rate further. Going ahead, weakening of rate will add to growth of credit,” Ms. Bhattacharya added.

According to her even fixed deposit rates would be cut by 0.25% by the bank across various maturities effective 5 October 2015. The reduction makes base rate of SBI the lowest in the market.

Base rate is the minimum rate less than which a bank can’t lend to consumers.

Also read: RBI cut key interest rate to 6.75% by 50 basis points

-Sumana

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