SBI reduces base rate to 9.75%
September 18, 2012‐ Mumbai
A day after the Reserve Bank of India has reduced the Cash Reserve Ratio (CRR) by 25 basis points, the State Bank of India has announced that it is reducing its base rate to 9.75% from 10%. The new rates will benefit all loans linked to SBI's base rate including existing as well as new customers for home loans, car loans and all other non-fixed loans. Base Rate is the minimum rate at which banks lends loans to its customers. A basis point is equal to 0.01 percentage point.
Earlier in the month, State Bank of India has decided to cut deposit rates, which was followed by several other banks in the country. The 25 basis points reduction would mean that customers can save by about Rs. 17 in an EMI for every 1 lakh loan. State Bank of India is now the first bank in the country to lower its lending rate since RBI has reduced CRR thus releasing Rs. 17,000 crore into the system.
State Bank of India is the biggest player in the banking sector in India.
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