State Bank of India (SBI), on Thursday, said that it cut interest rate on loans to exporters by 50 basis points with effect from June 23.
“We have cut interest rates for exporters by 50 basis points effective last Saturday after our Asset Liability Committee (ALCO) meeting,” said Pratip Chaudhuri, Chairman, while meeting media persons at the venue of CII’s Banking Tech Summit here.
The RBI had increased the limit of export credit refinance from 15 per cent of outstanding export credit of banks to 50 per cent to augment liquidity and encourage banks to increase credit flow to the export sector. ``This will potentially release additional liquidity of over Rs.30,000 crore, equivalent to about 50 basis points reduction in the Cash Reserve Ratio.(CRR),” RBI had said in its first mid-quarter review of Monetary Policy 2012-13, on June 18.
Prior to the monetary review, SBI had also reduced its lending rates between 0.5 percentage point and 3.5 percentage points which would benefit small and medium enterprises (SME) and the agriculture sector.
The bank’s Base Rate continues to remain at 10 per cent.