New Delhi, Feb 11: Country's largest lender the State Bank of India (SBI) today said it will revise its benchmark prime lending rate, State Bank Advance Rate (SBAR), by 25 basis points from 12.75 per cent per annum to 12.50 per cent per annum. The revision will take effect from February 16, said a statement. A benchmark rate is used as a yardstick for measuring or setting other interest rates; for example, a bank's prime lending rate, which it uses to price loans.
The reduction in PLR is likely to moderate lending rates for all category of borrowers, including housing (floating rate), corporate, car loan etc. The decision follows the up to one per cent cut in housing and consumer loan rates announced by Canara Bank and Allahabad Bank.