SBI may pass on RBI`s rate cut benefits to customers, announcement likely after evaluation

The RBI has announced reduction of repo rates by 25 basis points to 5.75 percent in its second bi-monthly monetary policy of 2019-20.

New Delhi: State Bank of India (SBI) Chairman Rajnish Kumar has hinted that the bank may pass on the benefits of Reserve Bank of India's rate cut to customers.

Kumar said that SBI will evaluate the interest rate cut by the Central Bank and consequently make an announcement.

The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das on Thursday announced reduction of repo rates by 25 basis points to 5.75 percent in its second bi-monthly monetary policy of 2019-20 on Thursday.

The move is expected to lead to reduction of lending rate by banks leading to lower EMI for housing, car loan and corporate borrowers. This is RBI's first monetary policy after Modi 2.0 took charge last week.

The repo rate under the liquidity adjustment facility (LAF) has been reduced by 0.25 percent or 25 basis points to 5.75 percent from 6 percent with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 percent, the marginal standing facility (MSF) rate and the Bank Rate to 6.0 percent and the CRR rates remain at 4 percent, RBI said.