SBI cut interest rates on both deposits and loans after the Reserve Bank of India last week slashed its main lending rate by a more-than-expected 0.50 % to 8.0%, in a shift toward focusing on economic growth.

The RBI has also, since January, reduced the percentage of deposits that banks have to park with it by 1.25 percentage points to 4.75%.

Several lenders, including ICICI Bank Ltd., have reduced both their deposit as well as the benchmark, or base, lending rates.

The SBI's base rate is 10%, just a shade above the 9.75% at ICICI Bank.

The SBI has already cuts interest rates on car loan and is considering cutting rates for almost everything except for home loan, Mr. Chaudhuri said.

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