SBI slashes base rate to 9.7%
India’s largest public sector bank, State Bank of India, has cut its base rate (minimum lending rate) marginally from current 9.75% to 9.70%.
The decision came following RBI cut its key policy rate and the cash reserve ratio by 25 basis points each. The effect of central bank’s move is also visible as HDFC bank has reduced interests on auto loan by up to 50 basis points without altering its base rate, which is currently at 9.70%. The interest rate on car loans has been cut by 25 basis points to the 10.50-11.50 % range.
After RBI announced cut, IDBI Bank was the first off the block to reduce base rate as well as its benchmark prime lending rate by 25 basis points each.