New Delhi: India’s largest leading leader State Bank of India (SBI) announced to cut benchmark interest rate across various maturities by 0.9 percent, the initiative comes soon after Prime Minister Narendra Modi asked banks to priorities lending towards poor and lower middle class.
According to an SBI official, the bank has reduced marginally cost of funds based lending rate (MCLR) by 0.9 percent from 8.90 percent to 8 percent for a period of 1 year.
Basically, yesterday the Prime Minister Narendra Modi asked banks to give special attention towards poor and middle class persons.
The Prime Minister said, “While respecting the autonomy of banks, I appeal to them to move beyond their traditional priorities and keep the poor, lower middle class and middle class at the focus of their activities.”
He added, “India is celebrating the centenary of Pandit Deendayal Upadhyay as Garib Kalyan Varsh. Banks should also not let this opportunity slip. They should take appropriate decisions in public interest promptly.”
Last week, its subsidiary State Bank of Travancore had announced reduction in the lending rate and another public lender IDBI too reduced it by up to 0.6 per cent.
With this step of SBI it is expected that this move will be shortly followed by the other private as well as government run banks.