State Bank cuts lending rate

After reducing base rate on Tuesday, the State Bank of India (SBI) on Saturday announced a cut in the benchmark prime lending rate (BPLR), the interest rate that commercial banks normally charge, by 0.25 percentage points to 14.50% - benefiting existing customers. The new rate will come into effect on September 27. HT reports.

After reducing base rate on Tuesday, the State Bank of India (SBI) on Saturday announced a cut in the benchmark prime lending rate (BPLR), the interest rate that commercial banks normally charge, by 0.25 percentage points to 14.50% - benefiting existing customers. The new rate will come into effect on September 27.

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Earlier on September 18, the bank had cut the minimum lending or base rate by a similar percentage on RBI cue. The base rate mechanism came into effect in July 2010 as a transparent alternative to the earlier benchmark prime lending rate.