SBI to consider rate cut after RBI's decision

The State Bank of India on Friday said it will consider rate cut after the Reserve Bank of India announces reduction in benchmark rates. "We will definitely look at our asset liability position soon after RBI's decision on rate cut," SBI Chairman O P Bhatt told media here. SBI has already reduced benchmark lending rate by 75 basis points to 13 per cent, beginning last month. Commenting on the proposed fiscal stimulus package that the government intends to announce tomorrow, Bhatt said, although there is no threat of recession in the country, growth is slowing. This package will help increase liquidity and encourage consumption behaviour. He also said that RBI should further reduce cash reserve ratio, so that cheap funds are made available to banks for lending.