SBI to cut interest rate on auto loans

SBI to cut interest rate on auto loansThe State Bank of India is planning to announce a reduction in interest rates on vehicle loans in the coming days.

Mr A. Krishna Kumar, Managing Director, State Bank of India said that the bank will already started adjustment of rates and will announce the reduction today or tomorrow. He also said that the bank will soon reduce rates on smaller ticket loans to small and medium enterprises.

The bank will soon announce its decision on the reduction in interest rates on deposits and advances. The bank announced a reduction in its lending rates after a similar move by other large banks in the country. Some banks including ICICI Bank, Bank of Baroda, Punjab National Bank and Bank of Maharashtra have already reduced deposit and lending rates.

The move by the banks comes after the central bank, the Reserve Bank of India (RBI) reduced its key interest rates for the first time in three years in order to boost the slowing economic growth on Tuesday. The central bank announced a 50 basis points cut in its policy repo rate to 8 per cent but pointed out that there is very little possibility for any further reduction in the rates.