An associate bank of State Bank of India, State Bank of Bikaner and Jaipur (SBBJ) has slashed its base rate by 25 basis points, bringing it down to 10.5 percent from the existing 10.25 percent. This rate cut comes after SBI announced a similar cut in its base rate by 25 basis points.
With this move, SBBJ becomes one of the first banks to introduce a rate cut following RBI's reduction in cash reserve ratio by 25 bps. The new CRR is 4.50 percent. The decision to reduce the base rate was taken by the Asset Liability Committee of SBBJ.
The bank issued a statement regarding this in which the Managing Director of the bank Mr. Shiva Kumar stated that not only the future customers but the existing customers of the bank will also be benefitted with the rate cut as the existing customers (on floating rate loans) would save interest costs. Borrowers of retail loans such as home loans and car loans, SME and corporate segment borrowers are expected to be benefitted by the rate cut.
In addition to a reduction in the bank's base rate, SBBJ has also cut its fixed deposit interest rates for deposits with various maturity periods. The new deposit rates will apply from October 1 onwards.
The new interest rate on deposits of 1 to 5 years maturity is 9 percent and for deposits of 5 to 10 years maturity the new interest rate is 8.75 percent. Interest rates for deposits of less than a year have not been changed.