Following its parent move, State bank of Bikaner and Jaipur (SBBJ) - the largest subsidiary of State Bank of India, has revised its benchmark lending rates downwards by 50 basis points to 12.25 percent.
The revised rates came into effect July 6 onwards.
The revised lending rates will be applicable on new lendings and existing advances at floating rate of interest which is linked to the benchmark lending rate.
The cut in the advance rate will be beneficial for the existing and new customers of the bank as the interest rates of all the PLR related portfolios will witness a downward movement.
SBI slashed its benchmark lending rate (SBAR) by half a percentage point to 11.75 percent in effect from June 29.
Trailing the move, its associate banks, State Bank of Mysore and State Bank of Hyderabad also reduced its lending rates by 50 basis points to 12.25 percent (both), with effect from June 29 and July 1, 2009, respectively.
Taking the finance minister call to reduce the lending rates, the several have been flexing to lower the lending rates.
PNB with its BPLR pegged at 11 percent has the lowest lending rates in the industry. It is expected that interest reduction is in line with the industry demands will help to abridge the demand gap and help banks in mobilising the ample funds in the system.