The largest lender of the country, State Bank of India is most likely to have arrived at its base rate. The banking major is most likely to set its base rate at around 7.75% after having made the clarifications needed on loan pricing on farm loans and export credit from RBI.
The bank’s base rate announcement is being eyed by majority of the banks. The banking major is likely to make an announcement of its base rate tomorrow, sources said.
According to sources, "SBI had sought some clarifications from the RBI on concessional loans when the base rate kicks in. The RBI has now agreed to relax norms for three category of loans.”
Clearing SBI’s doubts, RBI had sent a notification earlier this week to Indian Banks’ Association (IBA) that the base rate system would not affect the interest subvention schemes of the Government.
The rules will be relaxed for restructured loans, whose interest rates come below the base rate, the RBI said.