SBI TO INCREASE ITS BENCHMARK LENDING RATES
On Aug 16 .In a decision taken by SBI, raised the benchmark lending rate by 50 basis points to 12.25 percent. As a result of this rise, the home, vehicle and other corporate loans are destined to become costlier to existing borrowers. As a few days ago the Reserve Bank of India had increased its key rates to control rising prices. A leading trade and Industry Chamber Thursday said the State Bank of India (SBI) was forced to rethink its decision on tractor loans after political intervention, which it described as an unhealthy practice, ”It seemed that the SBI came under heavy political pressure from various quarters ,including bureaucracy Which forced it to withdraw the circular which is not a healthy practice in a vibrant democracy like that of India,” said Venogopal N.Dhoot. President of the Associated Chambers of Commerce and Industry of India (Assocham). According to Dhoot, most farmers will not adhere to their loan, repayment schedule and ultimately would mount a ...