<b>SBI considering cut in Prime Lending Rate</b>

India’s largest lender State Bank of India today said that it is considering a cut in its Benchmark Prime Lending Rate (BPLR) in light of soft interest rate regime.

While banks is reviewing PLR, for the time being rate action on SME, home loans would take care of most segments, its Chairman O P Bhatt told reporters on the sidelines of function organised by SBI Mutual Fund.

State Bank of India had reduced its BPLR Rate by 75 basis points from 13.00 per cent to 12.25 effective from January 01, 2009. It has also launched special home loan scheme with an eight per cent interest rate which remains fixed for one year.The priority sector customers are enjoying cheaper credit so also companies who get credit at market linked rates, he added.

SBI stock is trading at 1,306, up by 7.23 per cent over previous close on the Bombay Stock Exchange.