SBI cuts lending rates by 0.5-3.5 per cent

Mumbai: Days ahead of the RBI reviewing the interest rate, State Bank of India (SBI) on Friday announced cut in lending rates between 0.5-3.5 per cent, mainly for the small and medium enterprises (SME) and the agriculture sector. However, interest rate on home and retail loans will remain unchanged, the banking leader said, adding they are low and competitive.

Announcing the reduction in interest rate, SBI Managing Director and Group Executive (National Banking) A Krishna Kumar said the base rate will also remain unchanged at 10 per cent.

The Reserve Bank of India is scheduled to come out with its mid-quarter review of the credit policy on Monday amidst expectations of a cut in the short-term lending rates.

However, interest rate on home and retail loans will remain unchanged.

Though near 8 per cent inflation leaves small room for the big reduction in interest rate, the industrial growth slowing to mere 0.1 per cent in April is exerting pressure on the banking sector to go in for easing of the monetary policy.

(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)