SBI cuts external benchmark rate by 25 basis points. Reliance Capital shares hit upper circuit.
Cut the Rate: The State Bank of India (SBI) today announced reduction in its External Benchmark Based Rate (EBR) by 25 basis points to 7.80%. The revised rates will come into effect from January 1, 2020.
To calculate its lending rate, the SBI charges a spread of 265 basis points over the RBI's repo rate, which is currently at 5.15%, in addition to a premium of 10-75 basis points. The change in EBR will mean new homebuyers will get loans at an interest rate starting from 7.90% per annum from 8.15% earlier. ToI
On a High: Shares of Reliance Capital hit their 5% upper circuit of ?14.05 on BSE today after the company said that the Insurance Regulatory and Development Authority of India (IRDAI) has cancelled pledge enforcement of Reliance General Insurance Company Ltd's (RGICL) shares by Credit Suisse and Nippon India MF. The company's shares ended the day up 4.85%.
"The IRDAI, on December 27, 2019, has held that the pledge/transfer of shares of Reliance General Insurance Company Limited, a 100% subsidiary of Reliance Capital (RCAP), was in violation of the applicable provisions of law," the company said in a media release on December 29. Moneycontrol
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