State Bank Of India

State Bank of India (SBI), country’s largest lender is planning to reduce interest rates on education loans by up to 100 basis points that is 1% with effect from February 20, 2012.

As per the revision for a loan of Rs 4 lakh, interest rate will be down by 25 bps to 11.75%; for loans in the Rs 4-7.5 lakh range, the rate is down 100 bps to 12.50%, while for loans above Rs 7.5 lakh, the rate is lower by 25 bps to 12.25%. The bank is also offering a concession of 50 bps on interest rates for loans given to female students.

SBI has reported a better-than expected net profit of Rs 3,263 crore for the quarter ended December 2011, up 15.38% from Rs 2,828 crore in the corresponding quarter last year. Profits were driven by an improvement in net interest margin which widened to 4.05% from 3.61% a year ago.