SBI considers further reduction in lending rates

New Delhi, Feb 2: The State Bank of India, on Monday, Feb 2 expressed that it is considering a further reduction in the lending rates by at least 25 basic points.

"There is thinking (on these lines)," SBI Chairman O P Bhatt said when asked if there is a possibility of reducing the benchmark prime lending rate (PLR) by the bank.

O P Bhatt participated in a meeting of state-owned bankers. The State Bank of India, country's top public sector lender had already reduced the benchmark PLR by 75 basic points to 12.25 percent on Jan 1.

Asked about the interest rate outlook, Bhatt said that there is a downward bias in the short run and added liquidity at this point is not a matter of concern. "Liquidity at this point of time is comfortable ... ".

On the possibility of increase in the non-performing assets he said non-performing assets might go up both in proportion and absolute terms, with some small and medium enterprises and a few large corporates contributing to such assets.

Bhatt assured that the bank authorities will be vigilant about the increase of such assets and would be able to deal with it.

ANI