ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Foreign portfolio investors' exodus continues for 9th month; withdraw Rs 50,203 cr from equity market in June - know reasons
  • Windfall tax to recoup most of Rs 1 lakh cr revenue lost in excise cuts, industry sources say
  • D-Mart Q1 revenue jumps almost 2-fold to Rs 9,806.89 cr
  • This Android malware switches off Wi-Fi and drain mobile wallet
  • North Korea says US, South Korea-Japan agreement materialises US plan for 'Asian NATO'
Read in App
Business News » India News

SBI does a first in India, links interest rates to RBI's repo rate

Public sector lender State Bank of India (SBI) on Wednesday became the first Indian bank to link its saving and loan interest rates to the Reserve Bank of India (RBI)`s repo rate.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
SBI does a first in India, links interest rates to RBI's repo rate
Customers of SBI are also expected to derive immediate benefit of any future RBI monetary policy easing.

Public sector lender State Bank of India (SBI) on Wednesday became the first Indian bank to link its saving and loan interest rates to the Reserve Bank of India (RBI)`s repo rate. The move assumes significance as the effective interest rate from May 1 on savings deposit above Rs 1 lakh will come down to 3.25 per cent from 3.5 per cent. However, the linking of short-term loans with limit of above Rs 1 lakh will now attract an interest rate close to 8.25 per cent.

Further, customers are also expected to derive immediate benefit of any future RBI monetary policy easing. On Wednesday, the bank implemented the step which was announced in March. At that time, the lender had said that the move is aimed to address the concern of rigidities in the balance sheet structure and for quick transmission of changes in RBI`s policy rates. After the latest RBI rate cut, many lenders had reduced their benchmark marginal cost of funds-based lending rate (MCLR) and home loan rates.

"The major steps taken in this direction are...linking of savings bank deposits with balances above Rs 1 lakh to repo rate, with current effective rate being 3.50 per cent p.a (2.75 per cent below current repo rate of 6.25 per cent)," the bank had said in a statement in March. "All cash credit accounts and overdrafts with limits above Rs 1 lakh also to be linked to the repo rate. The risk premiums over and above this floor rate of 8.50 per cent would be based on the risk profile of the borrower, as is the current practice."

Earlier, the central bank noted slow transmission of monetary policy easing to customers by banks. A slowdown in deposit growth along with a rise in credit demand has hampered bank`s ability to transmit the entire easing. In April, muted growth and subdued inflation had prompted the RBI to lower its key lending rate for commercial banks by 25 basis points (bps) to 6 per cent. Even that time India Inc. had expressed hope that the second consecutive rate cut would translate into lower lending rates for both retail and corporate loans.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
State Bank of India
Written By: IANS
Updated: Wed, May 01, 2019
10:49 pm
Mumbai, IANS
RELATED NEWS
Fed can borrow RBI template to control rampaging US inflation: SBI Report Fed can borrow RBI template to control rampaging US inflation: SBI Report
7th Central Pay Commission Latest News: Online application window for SBI's specialist cadre officers ends on 12 June; details here 7th Central Pay Commission Latest News: Online application window for SBI's specialist cadre officers ends on 12 June; details here
New SBI MD: Alok Kumar Choudhary takes charge as Managing Director of State Bank of India New SBI MD: Alok Kumar Choudhary takes charge as Managing Director of State Bank of India
Sector Spotlight: PSU banks poised for upside; stocks to buy are SBI, Bank of Baroda, Canara Bank, says this analyst Sector Spotlight: PSU banks poised for upside; stocks to buy are SBI, Bank of Baroda, Canara Bank, says this analyst
SBI Q4 Results 2022: State-run lender posts highest ever PAT of Rs 9114 cr, up 41% YoY; NII jumps nearly 15.26% SBI Q4 Results 2022: State-run lender posts highest ever PAT of Rs 9114 cr, up 41% YoY; NII jumps nearly 15.26%

LATEST NEWS

AMC Sector: Growth-oriented funds lead the strong inflows, says BK Securities – check key triggers

ED provisionally attaches Rs 96 crore assets of TRS MP promoted Madhucon Group

Foreign portfolio investors' exodus continues for 9th month; withdraw Rs 50,203 cr from equity market in June - know reasons here

Commerce Minister looking to release new foreign trade policy before September, says official

Maruti Suzuki looks to deploy strong hybrid tech across model range

Windfall tax to recoup most of Rs 1 lakh cr revenue lost in excise cuts, industry sources say

North Korea says US, South Korea-Japan agreement materialises US plan for 'Asian NATO'

This Android malware switches off Wi-Fi and drain mobile wallet

D-Mart Q1 revenue jumps almost 2-fold to Rs 9,806.89 cr

Rakesh Jhunjhunwala Stocks: Agrochemical firm Rallis India shares may surge by 23% despite pressure on margins – Here’s why?

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV