Mumbai: State Bank of India (SBI) the country’s largest bank on Saturday reduced its benchmark prime lending rate (BPLR) by 25 basis points (bps) from 14.75% to 14.50% effective from 27 September 2012. 30% of SBI’s loans are linked to the BPLR.
One bps is 0.01%.
SBI’s move follows a similar cut in its minimum lending rate, or base rate earlier this week, by 25 bps to 9.75%, effective 20 September.
The rate cut by SBI comes after the Reserve Bank of India (RBI) reduced the cash reserve ratio (CRR) of banks to 4.5% from 4.75%, releasing about Rs 17,000 crore into the banking system.
CRR is the portion of deposits lenders have to hold with the central bank.