Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 9 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
SBI cuts base rate to 8.65 per cent
January 02, 2018
 Print    Send to Friend

MUMBAI: State-run State Bank of India (SBI) on Monday announced a hefty reduction in its lending base rate from the New Year by 30 basis points (bps), to 8.65 per cent per annum.

With this reduction from the earlier base rate of 8.95 per cent, SBI’s base rate has become the lowest among commercial banks, coming as a relief to its many retail borrowers, particularly of home and student loans.

Similarly, the bank’s Benchmark Prime Lending Rate (BPLR) was also reduced with effect from Jan.1, to 13.40 per cent yearly, from the earlier 13.70 per cent per annum.

“The revised base rate is reduced from 8.95 per cent to 8.65 per cent for existing customers and BPLR is reduced from 13.70 per cent to 13.40 per cent,” an SBI release said here.

“Additionally, the bank has decided to extend ongoing waiver on home loan processing fees till March 31, 2018, for new customers keen on buying their dream house and other customers looking to switch their existing loans to SBI,” it added.

There was, however, no change made to SBI’s Marginal Cost of Lending Rates (MCLR), the later system whereby rates are fixed for a one-year period and revised only at the end of each year.

The SBI had earlier revised its base rate by 5 basis points on September 28, while some other public sector banks like Andhra Bank and Bank of Baroda have also announced cuts in base rates.

“The reduction in base rate is a new year’s gift to the bank’s loyal customers as a large number of consumers who have their loan linked to base rate will be benefitted by decrease in rates,” MD, Retail and Digital Banking, P.K. Gupta said in the statement. “This reduction is part of bank’s efforts to ensure transmission of reduction in the policy rates in the recent past. Approximately 80 lakh customers will be benefitted by this move,” he said.

Rate cuts

In this connection, the Reserve Bank of India (RBI) has earlier pointed out problems around lending rate calculations, which are also holding up proper transmission by commercial banks of the interest rate cuts made by the central bank.

“Arbitrariness in calculating the base rate and MCLR and spreads charged over them has undermined the integrity of the interest rate setting process. The base rate and MCLR regime is also not in sync with global practices on pricing of bank loans,” the RBI had said.

Banks’ base rate on an average reduced 0.61 per cent in the period between December 2014 and October 2016, when the RBI lowered its repo, or short-term lending rate for commercial banks, by 1.75 per cent.

Cheque books of six banks that merged with public sector behemoth State Bank of India (SBI) are invalid with effect from Jan.1, 2018. SBI had earlier given time till Dec.31, 2017 to customers of the banks which had merged with it, to get new cheque books. SBI had earlier set a deadline of September 30, 2017.

Five associate banks of State Bank of India (SBI) and Bharatiya Mahila Bank were merged with SBI with effect from April 1, 2017.

The merger of State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP), State Bank of Hyderabad (SBH) and BMB has now made SBI join the league of top 50 banks globally in terms of assets.

Indo-Asian News Service

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Bharti Infratel, Indus to merge, form world’s No.2 telecom firm
BENGALURU/MUMBAI: India’s Bharti Infratel Ltd said it has agreed to merge with Indus Towers, in a deal that creates the world’s No. 2 telecom tower company with an estima..
India’s equity indices close in red on weak global cues
Mumbai: The key Indian equity indices on Wednesday provisionally closed in the negative territory following weak global cues, along with heavy selling pressure in the ban..
Sterlite Tech’s fourth quarter net profit up 77 per cent
Mumbai: Global technology company Sterlite Technologies on Wednesday reported a rise of 77 per cent in its net profit for the fourth quarter of 2017-18. According to t..
IMF expects India’s economy to grow 7.4%
NEW DELHI: The International Monetary Fund (IMF) on Tuesday said that it expects India’s economy to grow at 7.4 per cent in 2018 from 6.7 per cent in 2017. According t..
Deutsche Bank ends talks over sale of Indian business
New DELHI/FRANKFURT: Deutsche Bank has ended talks to sell its Indian retail and wealth management business to private lender IndusInd Bank Ltd, two people with knowledge..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright