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SBI’s car loan disbursal in August almost doubles to Rs 900 crore

04 Sep 2012 Evaluate

State Bank of India (SBI), the country's largest lender has been able to almost double its car loan disbursals for the month of August following an interest rate cut. The loan disbursals jumped to Rs 900 crore from the earlier Rs 550 crore on the back of 0.50% cut in its auto loan offering. The bank has seen the advances rising despite nation’s largest carmaker Maruti Suzuki’s production dipping due to internal issues.

Pursuant to Reserve Bank of India trimming its statutory liquidity requirement (SLR) holdings which was preceded by raising of limits on export refinance, SBI trimmed interest rates on auto and home loans in the first week of August.

Due to the above moves additional liquidity was available with the bank which was passed on without announcing a cut in the bank’s base rate or the minimum rate of lending. While the home loan impact will take some time to come, the car loans have gone up significantly.

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