SBI cuts lending, deposit rates effective from Jan 1

Sunday, December 21, 2008 at 2:12 am under Business News SBI cuts lending, deposit rates effective from Jan 1

Country’s largest lender State Bank of India on Saturday (Dec 20) announced a 0.75 per cent cut in its prime lending rate and a 0.25-1 per cent reduction in deposit rates from January 1. State Bank’s PLR now stands reduced at 12.25 per cent, the bank said in a press release on Saturday (Dec 20).

With the revision, 1-2 year deposit rates will now attract an interest rate of 8.5 per cent as against the earlier 9.5 per cent while deposits having two years to less than 1,000 days maturity will attract a 8.75 per cent (9 per cent), the bank said.

Similarly, the 1000-days deposits special deposit scheme, which had offered 10 per cent rates earlier, will now give 9 per cent to investors, SBI said. The rate cut came shortly after India’s premier home loan financer Housing Finance Development Corporation (HDFC) reduced its home loan rates by 0.5 per cent.

Other leading state-owned lender, Union bank of India had reduced its deposit rates yesterady. Canara Bank also annonced reductions in their deposit and MSME lending rates. More banks are likely to take cue from SBI’s rate cuts and may announce cuts in their rates in the next few days, banking sources said.

(Agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Written by: Sajid Manzoor

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