SBI to slash loan rates by 25-50 bps for exporters

The country's largest bank, the State Bank of India (SBI), is to slash interest rates on loans for exporters by 25-50 basis points (bps), a senior official said.

He said that the new rates may come into effect immediately after the bank’s asset liability committee meeting scheduled for June 23.

The latest move has come on the back of the Reserve Bank of India’s (RBI) decision on June 18 to raise the export refinancing limits of banks to 50 per cent in order to improve liquidity in the system. Currently, the export credit refinance (ECR) limit is pegged at 15 per cent of the rupee export credit eligible for refinance as at the end of the second preceding fortnight.

Analysts estimate that the increase in refinancing limit could provide additional liquidity of Rs 30,000 crore to the banking system.

Source : Exim News Service - Mumbai, June 21