SBI: New interest regime to kick in

Shares of State Bank of India (SBI) will remain in focus, as new interest rate regime will kick in from May 1. In March, SBI had announced that it will link its interest rate on savings account with balance above ₹1 lakh and short-term loans such as overdraft and cash credit facility to RBI’s repo rate from May 1. According to SBI, these steps are in order to address the concern of rigidities in the balance sheet structure and for quick transmission of changes in RBI’s policy rates.