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Sep 19, 2012

SBI heats up loan market

State Bank of India has reciprocated the move of 0.25% cut in CRR by 0.25% cut in its Base Rate. The new Base Rate for SBI will be 9.75%. This is lowest Base Rate at present for Public Sector Banks. In Private Banks ICICI has the same rate and this also happen to be lowest in Indian banking at present. With the festive season started and lot of banks offering festival bonanza for its customers other banks may also start reducing the rates. The loan customers will be happy a lot.

Base Rate is the minimum lending rate the bank offers to any customer. It cannot lend less than its Base Rate. Base Rate is fixed by bank after knowing its cost of funds, yield on advances and maturity pattern of both.

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