SBI slashes lending rates by 25 bps; stock up

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SBI slashes lending rates by 25 bps; stock up
The State Bank of India on Monday announced that it has reduced prime lending rates by 25 bps from 14.75% p.a. to 14.50%.

This move came after bank slashed its base rate by 25 bps from 10.00% p.a. to 9.75% p.a which was effective from September 20, 2012.

The revised lending rates will be effective from September 27, 2012.

The shares of the company was seen trading higher by 1.37% to Rs 2,242 on BSE at 10.51 am IST. It touched intra-day high of Rs 2251.

Last week, the Reserve Bank of India (RBI) kept repo rates steady and had cut the cash reserve ratio (CRR) by 0.25 basis points.

Cash reserve Ratio (CRR) is the amount of Cash that the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks.

After India's largest lending bank slashing rates, other banks are expected to follow the trend.

Read more about: sbi, interest rates
Story first published: Monday, September 24, 2012, 10:57 [IST]
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