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Journalism of Courage
State Bank of Mysore (SBM),a subsidiary of SBI has decided to reduce lending rate by 0.25 per cent effective tomorrow.
The base rate has been reduced to 10.25 per cent from 10.50 per cent,State Bank of Mysore said in a statement.
Base rate is the minimum lending rate below which a bank cannot lend.
Loans linked to base rate of the bank will become cheaper by at least 0.25 per cent.
Last month,SBI slashed lending rate by 0.25 per cent to to 9.75 per cent,the lowest base rate in the banking sector.
The decision by the country’s largest bank comes a day after the Reserve Bank cut CRR by 0.25 per cent to 4.5 per cent injecting Rs 17,000 crore into the system.
SBI also reduced the benchmark prime lending rate (BPLR) by 0.25 per cent to 14.50 per cent last week. The rate cut would benefit those who availed of loans before July,2010.
The base rate mechanism came into effect in July 2010 as a new transparent alternative to the earlier benchmark prime lending rate.
