State Bank of India cuts interest rates by 75 basis points

Mumbai, Nov 6 (IANS) The cost of credit for households and the corporate sector is all set to fall as the State Bank of India (SBI), the country's largest bank, has cut its prime lending rate by 75 basis points.

'The cut by 75 basis points should be announced later today,' SBI chairman O.P. Bhatt told reporters on the margins of a banking conference here Thursday.

The move follows the assurances given by the state-run banks to Finance Minister P. Chidambaram Tuesday on lowering interest rates after the Reserve Bank of India cut key rates to lower the cost of borrowings for commercial banks.

The Union Bank of India, the United Bank, Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India and Syndicate Bank, among others, have also cut their prime lending rates by 0.75 percent.

The benchmark prime-lending rate determines the interest rates on borrowings by the corporate sector, as also for households on loans taken to buy cars, homes or consumer durables.