SBI to reduce interest rates on SME loans

HYDERABAD, INDIA: India's largest lender, the State Bank of India, on Saturday announced interest rate cuts on loans to SMEs (Small and Medium Enterprises) in the wake of Reserve Bank of India's decision to cut repo rate by 50 basis points.

After inaugurating a small and medium city credit centre for speedy processing of loans to SME, SBI managing director A. Krishna Kumar told reporters that since about 47 per cent of deposits are under current accounts and savings accounts, net interest margins of the bank will not be impacted.

A few banks, including ICICI Bank, Bank of Baroda, Punjab National Bank and Bank of Maharashtra, had already reduced their deposit and lending rates following the RBI's decision.