SBI cuts base rate by 5 bps to 9.70 per cent

The State Bank of India (SBI), the country's top lender today announced a 5 basis point reduction in its base lending rates to 9.70 per cent from 9.75 per cent.

The new base rate of 9.70 per cent will be effective 4 February, the bank said in a statement.

While a reduction in the base rate will benefit all categories of borrowers. In the case of SBI, the benefit to be passed on will be minimum.

SBI, which last cut its base rate in September by 25 bps to 9.75, however, has the lowest base rate among state-run banks.

Most other state-owned banks had a base rate of around 10.5 per cent while ICICI Bank Ltd, the largest private sector bank, had kept its base rate at 10 per cent.

ICICI Bank lowered its base rate by 25 bps to 9.75 per cent following the reduction in RBI's policy rates.