SBI contemplating further cut in lending rates: Bhatt
SBI Chairman says liquidity situation comfortable, no cause for concern.
New Delhi: The country's top public sector lender, State Bank of India, today said it is considering further reduction in lending rates.
"There is thinking (on these lines)," SBI Chairman O P Bhatt said when asked if there is a possibility of reducing the benchmark prime lending rate (PLR) by the bank.
On the extent of cut in lending rates, the SBI chief said "it is difficult to say at this point of time" but indicated that it would not be less than 25 basis points.
SBI earlier reduced the benchmark PLR by 75 basis points to 12.25 per cent with effect from January 1.
Bhatt is in the capital to attend a meeting of state-owned bankers called by External Affairs Minister Pranab Mukherjee, who is also holds the finance portfolio.
On the interest rate outlook, Bhatt said, "There is a downward bias" in the short run and added liquidity at this point was not a matter of concern. "Liquidity at this point of time is comfortable (there is) no concern".
Commenting on the possibility of increase in non-performing assets of the bank, he said NPAs may go up both in proportion and absolute terms, with some small and medium enterprises and a few large corporates contributing to such assets.
"Maybe large and medium corporates could add to NPAs. We need to be vigilant about it . We can deal with it", Bhatt said.
- Virat Kohli's India look to Wrap Series At Eden, Regain No.1 Spot
- Not Easy for Off-Colour Martin Guptill to be Aggressive in Subcontinent: Anil Kumble
- Cricket Association of Bengal Installs Bell at Eden Gardens Ahead of Second Test
- Prune the Grass Please, Indian Team Management Tells Eden Officials
- Rupee Good Run Continues, Gains 3 Paise Against Dollar
- SAARC Summit Could be Postponed If India Not Attending: Pakistan
- Philippine Leader Takes Thinly Veiled Dig at US
- India's oil imports from Saudi Arabia and Iraq hit the highest in more than a decade