SBI cuts benchmark prime lending rate by 25 basis points
22 September 2012
The State Bank of India, the country's largest lender, has announced a 0.25 percentage point (25 basis point) reduction in its base lending rate.
This will bring down SBI's new benchmark prime lending rate (BPLR) to 14.50 per cent from the existing 14.75 per cent. The new rate will be effective 27 September, SBI said in a release.
The reduction, announced on Friday, will benefit those who have availed of loans before July 2010, SBI said.
SBI had, only last week (18 September), cut its base rate by a similar percentage. The Reserve Bank of India (RBI) had cut the cash reserve ratio for banks by 0.25 per cent to 4.5 per cent in its policy review announced on 17 September.
The reduction in the base lending rate would exclude a little over 12.5 per cent of SBI loan portfolio.
Of the bank's total advances of around Rs7,81,000 crore in the domestic market, around Rs1,00,000 crore is still on the BPLR basis, SBI chief general manager for finance control Sunil Pant said.