MUMBAI: On the back of the monetary policy announced by the RBI on February 7, SBI has cut interest rates on its home loans for all loans up to Rs 30 lakh. The bank cut its home loan rate by 5 basis points or 0.05 per cent.
Rajnish Kumar, Chairman, SBI, said it was difficult to pass on the RBI rate cuts as it would be difficult for SBI to cut deposit rates. He said lending was low and any further cuts without a deposit rate cut would be tough.
On the issue of benchmarking retail loans to an external benchmark, as suggested by RBI in its December meet, Kumar said it was not possible to follow it for EMI-based loans.
“It can be done for high-value or corporate loans,” he said.Banks are awaiting the notification for the same. The RBI had set April 1, 2019 as the deadline for retail loans to move to an external benchmark.