SBI, the country's biggest lender by assets, said on Sunday it had cut its so-called marginal cost of funds-based lending rates (MCLR) by 90 basis points, while unveiling new products for mortgage loans, one of the fastest-growing areas.
SBI, for example, raised the premium it charges on home loans to 65 basis points above the reduced one-year MCLR of 8 percent, according to details released on Monday.
The rate cuts also come after Prime Minister Narendra Modi on Saturday admonished banks to "keep the poor, the lower middle class, and the middle class at the focus of their activities," and to act with the "public interest" in mind.
"The combined impact of banks cutting lending rates and subvention provided by the government to small businesses is likely to help turn around growth faster than expected in the next fiscal year," said Saugata Bhattacharya, chief economist at Axis Bank, the third-biggest Indian lender.
SEOUL Oil prices rose in the first trading hours of 2017, buoyed by hopes that a deal between OPEC and non-OPEC members to cut production, which kicked in on Sunday, will be effective in draining the global supply glut.