SBI slashes lending, deposit rates

The State Bank of India has decided to cut the prime lending rates by 0.75% from January 1, 2009. The PLR of SBI has been reduced to 12.25 per cent. As a result, all home loans and auto loans offered by the SBI will become cheaper on the New Year.

The cut in the PLR will be applicable to all existing and new floating rate loans. The SBI has also reduced its fixed deposit rates by 0.25-1 per cent.

Other banks, Union Bank of India and Canara Bank also have reduced their deposit and lending rates. Others may follow suit in a day or two. Among the private banks, HDFC was the only bank to reduce its PLR by 0.5 %. Others including the ICICI Bank are yet to take a decision on slashing the lending rates.



Source: breakingnewsonline.net