BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

SBI, IDBI cut prime lending rate

The State Bank of India, or SBI, today announced a reduction in its prime lending rates, or PLR, with effect from April one.

Meanwhile, the Industrial Development Bank of India, or IDBI, the country's leading term-lending institution, also cut its PLR to 12.50 per cent from 13.50 per cent.

While the State Bank Advance Rate, or SBAR, has been reduced to 11.25 per cent from 12 per cent, the State Bank medium-term lending rate, or SBMTLR, has been lowered to 11.50 per cent from the previous level of 12 per cent per annum.

SBAR is applicable to loans and advances sanctioned as repayable on demand up to one year, while SBMTLR is applicable to land and advances beyond one year.

These changes in PLR were necessitated following reduction in bank rate and repo rate by one percentage point each by the Reserve Bank of India, or RBI, last Saturday.

RBI expected that all major banks, including those in the public sector, would reduce their lending rate proportionately in order to reduce the cost of the banking transactions.

UNI

Business

RBI ushers in lower interest regime