Mumbai, Jun 15 - Days ahead of the RBI reviewing the interest rate, State Bank of India (SBI) today announced cut in lending rates between 0.5-3.5 per cent, mainly for the small and medium enterprises (SME) and the agriculture sector.

"With a view to provide some relief to customers at a time when economy is slowing, we have decided to review the interest rate structure by way of realigning the existing spreads to the tune of 50 basis points (bps) to 350 bps," SBI Managing Director and Group Executive (National Banking) A Krishna Kumar said.

The rates cut are effective from June 1.

Kumar, however, said the base rate will remain unchanged at 10 per cent, which is higher than its immediate competitor ICICI Bank's 9.75 per cent.

He said the lower rates will not be applicable to loans sanctioned under specific schemes, export credit for which separate interest rate structure is in place.

Asked about the exclusion of these segments and individual borrowers, Kumar said their rates are already low and competitive as the bank had brought down the pricing on them in the past two months.

Kumar attributed the delayed announcement to the time taken for upgrading the IT system with the new rates.

Asked whether the bank will lower deposit rates, Kumar said "definitely, if the RBI lowers interest rates on Monday." PTI