Less than 25% of book is linked to base rate, says SBI

State Bank of India (SBI) reduced base rate by 30 bps. In an interview to CNBC-TV18, PK Gupta, MD of SBI spoke at length about the same.

He said that transmission of reduction in policy rate through base rate does happen with a bit of a lag. Therefore, we have reduced the base rate.

He further said that little less than 25 percent of the book is linked to base rate.

He also mentioned that many customers are shifting to marginal cost of lending rate (MCLR), so customers who are on the base rate will get benefit of the reduction in policy rates that happened.

Talking about NIMs, he said there will not be a huge impact on net interest margins (NIMs).

Further interest rate movement will depend on Reserve Bank of India's (RBI) call on interest rates, he added.

On stake sale front, he said we are yet to take a view on stake sale in UTI MF.

Watch accompanying video for more details.