SBI may reduce lending rate after RBI's credit policy

Mumbai: State Bank of India (SBI) today said it will consider reducing lending rates after the announcement of the Reserve Bank's annual credit policy on 17th April.

"Of course, we will look into reducing the interest rate in the future, but it will depend on the magnitude of the CRR cut (by the RBI)," SBI Managing Director and Group Executive (national banking) A Krishna Kumar said at the 6th

International Banking and Finance Conference here.

[caption id="attachment_268950" align="alignleft" width="380" caption="RBI's annual credit policy is scheduled to be unveiled on 17th April."][/caption]

"I expect the cut in the cash reserve ratio (CRR), but not sure about the repo rate," he said while talking about expectations from the RBI's annual credit policy which is scheduled to be unveiled on 17th April.

CRR is the portion of deposit that banks are required to keep in cash with the Reserve Bank. At present it is 4.75 percent. SBI Chairman Pratip Chaudhuri had earlier said that RBI might cut CRR by 0.75 percent in its annual policy, but might retain the short-term lending rate at the existing level of 8.5 percent.

More from Economy

"We have already reduced our interest rate on educational loan segment and we will also reduce the interest rate in the SME sector soon," Kumar said.

The reduction of interest rates in other segments, he said, "will largely depend on what the RBI does in its annual monetary policy to be announced on April.

PTI