SBI announced the relief in Loan rate for prospective new home and auto buyers On the day P Chidambaram took charge as the Union finance minister. The new rates, lower by 25-85 basis points (bps) for home loans and 50 bps for auto loans, will come into effect from August 7. The bank, however, is yet to decide on reducing the base rate — the benchmark rate to which all bank loans are linked.
Pratip Chaudhuri, chairman, SBI, had said yesterday the SLR cut would release Rs 10,000 crore for SBI and had indicated the bank would review the rates on retail loans. The SLR cut will release up to Rs 60,000 crore into the banking system so that funds could be deployed in the productive sectors of the economy.
Other banks are yet to take a call on this one, however they will any how have to reduce the rates.
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