SBI, first bank to link repo rate and interest rates
State Bank of India had earlier announced that it will be linking the short-term loans as well as savings account deposits to the repo rate, the rate at which the Reserve Bank of India lends money to commercial banks.
SBI is the first bank in the country to implement the repo rate-interest rate linkage, which is expected to make loans cheaper for customers.
95% customers will have stability of interest rate: SBI Chairman
State Bank of India Chairman Rajnish Kumar earlier said, "Our 95% customers will have stability of the interest rate. The impact will be only for individuals with deposits over Rs. 1 lakh and above. The impact on number of credit customers will be more."
"No retail accounts will be impacted. Only wholesale or corporate account will see a change," he added.