India's largest lender, State Bank of India (SBI) might lower its lending rates soon. Mr. Pratip Chaudhuri, Chairman of SBI said while in World Economic Forum on India meeting said, "I am not ruling it out. It could happen in the next two-three weeks".
This move is possible as the Reserve Bank of India recently reduced cash reserve ratio by 25 basis points. India's largest commercial bank has a surplus liquidity of Rs 60,000 to 70,000 crore.
No other commercial bank has so far reduced their lending rates after the RBI monetary policy review on October 31.
Mr. Chaudhuri said that the cut in CRR would help to increase the profit for the bank but this would increase the provisioning requirement fro restructured loans.