State Bank of Bikaner & Jaipur, the largest associate of SBI, today cut its base rate by 0.15 per cent to 10.1 per cent, which will lead to lower EMIs for its customers.
The bank has revised downward the base rate or minimum lending rate from 10.25 per cent to 10.10 per cent effective May 6, SBBJ said in a statement.
All loans linked to its base rate will now come down by at least 0.15 per cent.
SBI, the parent bank, had reduced its base rate by 0.15 per cent to 9.85 per cent, with effect from April 10.
The Benchmark Prime Lending continues to be at the same level of 15 per cent, it said.
Banks such as SBI, ICICI Bank, HDFC Bank and Axis Bank had cut lending rates by up to 0.25 per cent after RBI Governor Raghuram Rajan’s tough talk with bankers on the issue. However, many others have not revised their rates yet.
The Reserve Bank had blamed banks for not passing the benefits of two repo rate cuts to borrowers and termed as “nonsense” the lenders’ claims that the cost of funds was high.