India's largest public sector bank, State Bank of India may extend its 8 percent rate on home loans until September. This was reported by a media on Sunday (12th April), citing some unnamed sources. Earlier, in February this year, SBI lowered home loan rates to 8 percent for new customers available until April 30.

 

The media quoted the officials as saying that, the proposal has been forwarded to the chairman's office and approvals for the extension will be made public shortly. Earlier, on Thursday (9th April), State Bank of India said it has cut deposit rates by 25 to 50 basis points for deposits below 10 million rupees. This will come into effect from Monday (13th April).

 

Since October last year, the central bank has cut its key lending rate by 400 basis points, most recently in early March, as the policy focus has shifted to boosting demand and arrest slowing growth. The central bank in March said the reduction in rates should further encourage banks to provide credit for productive purposes at viable interest rates.