In some relief for the prospective vehicle buyers, the State Bank Of India will be reducing the interest rates on the vehicle loans. The interest rates will be reduced by the bank in a day or two.
Krishna Kumar, the managing director of State Bank Of India said, “We have already started adjustment of rates on the loan side. Auto loan rates will be cut today or tomorrow’’. Kumar added that it will be flowed by a reduction in the rates on the smaller ticket loans to the small medium enterprises.
The formal decision on the reduction of the interest rates on the deposits and advances is yet to be taken and will be decided soon. An official, while talking about the likely impact of the interest rate cut on the ban profits in the financial year, said that 47 percent of the deposits were under current accounts and saving accounts, while the net interest margins would not have any impact.
Many of the banks like the ICICI Bank, Bank Of Baroda, Punjab National Bank and the Bank Of Maharashtra have already reduced their deposit and lending rates. The interest rates have been reduced by the banks while following the 50 basis points cut in the repo rate by the Reserve Bank Of India.
