SBI expects limited scope of reduction in bank’s interest rates

State Bank of India (SBI), country’s largest public sector lender, is expecting limited scope for further reduction in the bank’s interest rates. The bank is also seeing early signs of revival in loan growth.

Last month after Reserve Bank of India reduced the cash reserve ratio by 25 basis points (bps), the bank had cut its base rate, the minimum interest rate at which it lends, by 25 bps to 9.75%.

The bank has registered a surge of 136.91% in its net profit at Rs 3751.56 crore for first quarter ended June 30, 2012 as compared to Rs 1583.55 crore for the same quarter in the previous year. Total income of the bank has increased by 16.89% at Rs 32415.49 crore for Q1FY13 as compared Rs 27731.67 crore for the corresponding quarter previous year.