The State Bank of India (SBI) has made credit to borrowers in the small-scale industries (SSI) and agriculture sectors cheaper by around 25 -100 basis points in some segments, effective 1 November.
Mr A.K. Purwar, SBI chairman, said post-Credit Policy SBI undertook a comprehensive review of its interest rates. The first instalment of deposit rate cuts were announced recently, and the reduction in the rates for the priority sector advances is the follow up.
On the issue of a reduction in prime lending rate, Mr Purwar said that while the bank would review its rates from time to time, there was no immediate plan for a cut.
In its latest move, the bank has slashed interest rates on short-term loans to SSIs for a period of up to one year, by 100 basis points to 8.75 per cent, for advances between Rs 25,000 and Rs 50,000.
