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Tuesday, Dec 17, 2002

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Lending rates

This is with reference to the article "SBI examining sector-wise lending rates" (Business Line, December 15). It is heartening to know that after ICICI bank, the State Bank of India is also examining the sector-wise lending rates.

This is a good trend, and more banks are likely to adopt it if the Reserve Bank of India gives permission for a proper structure. At present, the small industries, the agriculture sector and other such people cannot easily get bank loans. If this new policy helps them get bank loans faster and at a lower rate, then the Centre should encourage more banks to adopt the same policy.

Jacob Sahayam

Karigiri

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