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This is an archive article published on July 4, 2013
BoI slashes base rate; SBI rules out cut
Even as State Bank of India SBI the countrys largest lender ruled out the possibility of cutting its base rate,Bank of India
Written by ENS Economic Bureau
New Delhi | July 4, 2013 01:07 AM IST
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Even as State Bank of India SBI the countrys largest lender ruled out the possibility of cutting its base rate,Bank of India BoI became the first public sector bank to heed to finance minister P Chidambarams call and reduced its base rate by 0.25 per cent.
BoI has decided to reduce its base rate from the existing 10.25 per cent to 10 per cent,the bank said in a statement,adding that the new rate would be effective from July 8. Base rate is the rate below which banks cant lend.
However,SBI chairman Pratip Chaudhuri ruled out any reduction in the banks base rate,saying it was the lowest in the market. We are already at the lowest. We are at 9.7 per cent base rate. Other banks have been asked by the finance minister to come to SBI level, Chaudhuri said.
Our home loan rates are at 9.95 per cent,everybody is at 10.2 per cent. We are ahead of the curve, he added.
Chaudhuri also said that SBI may consider merging one of its associate banks in the current fiscal.
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