SBI cuts lending rates for SME, agri by 0.5%-3.5%
MDT/PTI 18 June 2012
While SBI cut lending rates for SME and agriculture loans ahead of RBI policy, there is no immediate change in the home loan and auto loan

Mumbai: Days ahead of the Reserve Bank of India (RBI) reviewing the interest rate, the country's largest state-run lender State Bank of India (SBI) on Friday announced cut in lending rates between 0.5%-3.5%, mainly for the small and medium enterprises (SME) and the agriculture sector.
 
However, interest rate on home and retail loans will remain unchanged, the banking leader said, adding they are low and competitive.
 
Announcing the reduction in interest rate, SBI Managing Director and Group Executive (National Banking) A Krishna Kumar said the base rate will also remain unchanged at 10%.
 
The RBI is scheduled to come out with its mid-quarter review of the credit policy on Monday amidst expectations of a cut in the short-term lending rates.
 
Though near 8% inflation leaves small room for the big reduction in interest rate, the industrial growth slowing to mere 0.1% in April is exerting pressure on the banking sector to go in for easing of the monetary policy.
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