SBI and IDBI to decide today on rate cuts
Mumbai: Following the weekend announcement by the Reserve Bank of India of a cut in
rates, the two major players in the commercial banking and development banking sectors,
State Bank of India (SBI) and the Industrial Development Bank of India (IDBI)
respectively, will take a decision on Monday on the lowering of their rates. Informally, most banks have stated that they would cut their rates
by 50 to 75 basis points. This could mean a total savings of over Rs. 1,500 crore in
interest burden for corporate India, based on their 1998-99 figures for borrowings.
While public sector units are likely to be the biggest
beneficiaries due to their large borrowings, private sector giants like Reliance
Petroleum, Reliance Industries, Tata Steel, Mangalore Refiniries and Larsen & Toubro
are also likely to benefit.
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