SBI, HDFC Bank trim lending rates

India’s largest public sector lender State Bank of India (SBI) reduced its base rate to 9.70 per cent from 9.75 per cent with effect from February 4.

But the bank kept its deposit rates unchanged as it feels that the rates are already the lowest. It may be noted that banks are facing difficulty in attracting deposits as savers are buying gold and investing in mutual funds.

In another development, HDFC Bank cut interest rates on auto loan by up to 50 basis points without altering its base rate, which is currently at 9.70 per cent. The interest rate on car loans has been cut by 25 basis points to the 10.50-11.50 per cent range. The bankÂ’s two-wheelers loans will be cheaper by 50 basis points and will be available at 19.25-22.25 per cent.

HDFC Bank reduced the commercial vehicle loans by 25 basis points. Loans for heavy and light commercial vehicle will be available at 11 per cent and 13.75 per cent, respectively.

Kerala-based Federal Bank also slashed its interest rates on auto loans to 10.45 per cent from 11.20 per cent.