No immediate cut in lending rates: SBI

No immediate cut in lending rates: SBI
State Bank of India (SBI) has said that it won't be cutting its lending rates immediately even as the Reserve Bank of India (RBI) reduced the policy rate by 0.25 per cent earlier this week.

"With repo rate (short-term lending rate of RBI) cut, we don't get savings because our total repo borrowing is 20,000 crore," SBI Chairman Pratip Chaudhuri said here.

"So if you (RBI) reduce rate by 25 basis points, the saving is 50 crore. Total advances is 5 lakh crore which comes to 1 bps," he said.

Had there been a cut in CRR, it would have would have provides room for cut, he said. The bank will continue with the same lending and deposit rate as of now, he added.

Read more about: state bank of india
Story first published: Tuesday, May 7, 2013, 9:30 [IST]
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