SBI; Home loan no change

India's largest  bank State Bank of India (SBI)   is unlikely to reduce its base rate for now.

 Mr. Pratip Chaudhuri, Chairman, SBI said,  "We have an ALCO (Asset, Liability Committee) meeting this week itself and it will have education loan rate cut on top of the agenda"

The SBI's base rate stands at 10% as of now, which is the lowest in India.

Mr.  Chaudhuri also said,''Giving the rationale behind any possible rate cuts, he said reduction in interest rate will be determined in case of competition from other banks or if the credit pick-up is slow. The possibility of  reduction in housing loans is less as the rate is 10.50% and the base rate is 10%. Hence, the possibility is less. Moreover, the tenure of a home loan is 25 to30 years, so we have to think about it a lot.  In case of further CRR (Cash Reserve Ratio) cut by the Reserve Bank , the entire rate structure will come down."

On January 24, 2012 the Reserve Bank had reduced the CRR  by 0.5% to 5.5% to infuse liquidity into the system.
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