After deposit rate cuts in May, SBI now slashes lending rates by 25-75 bps

Move will have to be matched by other lenders at a time when margins are under pressure due to extended loan moratorium and a ruling due on whether they can charge interest on the moratorium after all

State Bank of India (SBI) gave huge relief to its customers on Monday by sharply reducing lending rates by 25-75 basis points (bps). This will have to be matched by other lenders at a time when margins are under pressure due to extended moratorium on loans and a ruling due on whether they can indeed charge interest on the moratorium. 

The lending rate cuts come after the country’s largest lender slashed its interest rates on retail term deposits by up to 40 bps across all tenors, from May 27. In fact, the bank reduced its deposit rates twice in May,