State Bank of India Chairman A K Purwar today said interest rates would continue to be stable with a little downward bias.
He, however, did not comment on whether the bank proposes to reduce interest rates further.
The statement assumes importance in the wake of reduction in lending and deposit rates by most of the banks, after the benchmark bank rate was reduced by 0.25 per cent to 6.25 per cent in the October credit policy of the Reserve Bank of India.
The SBI had brought down prime lending rate by 0.25 per cent to 10.75 per cent, medium term lending rate to 11.25 per cent and short term rate to 10.25 per cent from November.
The bank also reduced its term deposit rates by 0.75 per to 7.0 per cent for 1-2 years deposits, 7.25 per cent for 2-3 years and 7.5 per cent for over three years. Housing loan rates have been reduced to about 9.5 per cent.
