SBI cuts loan rates by 5 bps: 5 things you must know
Country's largest public sector lender State Bank of India has followed its smaller peers to cut the lending rates by 5 basis points across all tenors with effect from April 10. This is the bank's first rate cut announcement since November 2017. The reduction in lending rate by the bank follows a cumulative 50 basis points cut in repo rate by the RBI in its last two monetary policy review meeting.
Last month SBI was first to link its short-term loans and large savings deposits rates to the repo rate from May 1. For balances up to Rs 1 lakh, the savings bank rates would be 3.50 percent, while for balances above Rs 1 lakh effective rate would be 3.25 percent. The bank had linked all cash credit accounts and overdrafts with limits above Rs 1 lakh to the repo rate plus a spread of 2.25 percent. (Reuters)