In order to give boost to its credit expansion, the largest lender of the country, State Bank of India may soon announce reduction in its interest rates. Former holds the reputation of being the largest lender in the country.
The Chief Financial Officer at SBI, Mr. Diwakar Gupta said, "All sentiment is building towards it (an interest rate cut)...we are keen to do it."
In the latest monetary policy review, the Reserve Bank of India reduced the Cash Reserve Ratio (CRR) from 6% to 5.5%. The move has released Rs. 32,000 crore into the system. It can lead the lenders to reduce the interest rates even before RBI reduces repo rate.