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SBI cuts prime lending rate

The State Bank of India today took the lead among Indian commercial banks, to reduce its prime lending rate to 13.5 from 14 per cent with immediate effect. The rate is exclusive of interest tax.

This follows the Reserve Bank's announcement today of reducing the bank rate by half a percentage point to 10 per cent per annum with effect from the close of business today.

Earlier during the day, the Reserve Bank lowered the three-day fixed rate repos for tomorrow in government of India dated securities at 7 per cent per annum.

The State Bank's medium term lending rate, which is offered for term loans for three years and above to entrepreneurs for making medium and long term investments and which is anchored to the bank rate, is being revised from the present level of 13.5 to 13.25 per cent. This is 3.25 per cent over the bank rate.

UNI