State Bank of India cuts the interest rates by 0.9 percent
New Delhi: State Bank of India, On Sunday, cut the interest rates by 0.9 per cent making its loans the cheapest among the lenders.
The interest rates for the tenures of one month, three months and six months have been reduced by 0.9 per cent.
On December 31, Prime Minister Narendra Modi requested banks to pay attention towards poor and middle class people after which SBI has reduced the marginal cost of funds based leading rate( MCLR) by 0.9 per cent (8.90 percent to 8.00 percent)for a tenure of one year.
What 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.
- 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.
Banks which announced the reduction in interest rates are:
- State bank of Travancore and Industrial Development of India announced the reduction in the interest rates up to 0.6 per cent.
- Union Bank of India and Punjab National Bank had announced the reduction from 0.6 per cent to 0.9 percent.
According to bank executives,the private lenders like Housing Development Finance corporation and HDFC banks, ICICI banks etc are likely to match the rates of SBI to ensure that they do not lose customers.