|State Bank of India (SBI) has announced a cut of 50 basis points in export credit financing. The new rates were effective from June 23, 2012.
"We have cut interest rates for exporters by 50 basis points effective last Saturday after our Asset Liability Committee (ALCO) meeting," said Pratip Chaudhuri, Chairman, SBI. He was addressing the media at the CII Banking Tech Summit.
The central bank had recently increased te limit of export credit refinance from 15% to 50%, this was done to increase the credit flow to the export sector. RBI had notified in its mid-quarter review of monetary policy on 18th June that, this increase in limit is effective of a 0.5% CRR cut, and would add cash flow of Rs. 30,000 crore to the export sector.
SBI had previously reduced the rates on lending to SME and agri-sector by 0.5% to 3.5%. The base rate, which is the minimum rate at which banks offer credit remained at 10%.