Within hours of the Reserve Bank of India cutting the Cash Reserve Ratio by 0.25 percentage point, State Bank of India (SBI) said it would decide on reducing lending rates in a day or two for the benefits of borrowers.
“Our Asset Liability Committee (ALCO) will meet tomorrow or day after tomorrow to review interest rates...Transmission of monetary policy to surely take place,” SBI Chairman Pratip Chaudhuri told reporters here.
“Definitely, on interest rates there is a downward bias which is very supportive of growth. I am happy that the RBI has taken into account our persistent request to do away with the CRR,” he said.
The bank could either cut the Base Rate or reduce the interest rate in some segments, he said, adding that the bank would pass on the gain to customers. The monetary policy action would unlock Rs.2,500 crore for SBI, and there would be savings to the tune of Rs.200 crore, he said. On the second quarter expectation, Mr. Chaudhuri said, “the September quarter-end result should be good. So far in August, our net interest margins are on target.”
