State Bank of Bikaner and Jaipur has reduced its base rate by 25 basis points. The new rate will be 10.5 per cent (10.25 per cent).
This decision is in line with the RBI’s expectations to pass on the benefits to customers as well as with SBI, a release from the bank said.
SBBJ, an SBI Group company, is among the first banks to reduce its base rate after the RBI announced a cut in CRR by 25 basis points to 4.50 per cent. The Asset Liability Committee of SBBJ that met in Jaipur took the decision.
In a press release, the Managing Director of SBBJ, Shiva Kumar, stated that the reduction in base rate will not only benefit future customers but lead to interest cost saving for all its existing customers also, who have taken loans on floating basis. Those to benefit include retail accounts like car loan and home loan, SME and corporate customers.
The bank has simultaneously reduced its deposit rates for various periods and both are effective from new quarter, starting October 1.
Accordingly, the highest rate of interest on deposits is now capped at 9.05 per cent for a special 50 week deposit being offered in the Golden Jubilee Year of the bank. Generally, there is 25 bps reduction. The new rate for 1 year to 5 year is 9 per cent and for periods above 5 years and up to 10 years, it is 8.75 per cent. Rates below one year, other than Golden Deposit, have not been changed for the present, the release added.