Bangalore: State Bank of India (SBI) on said that it would decide on cutting lending rates based on the announcements made by the Reserve Bank of India (RBI) in its annual monetary policy on April 17.

?We have already reduced our interest rate on educational loans and we are seriously considering reducing the interest rate for SMEs? We will consider reducing lending rates for other segments based on the announcement made by the RBI in it?s annual credit policy,? said SBI chairman, Pratip Chaudhuri on the sidelines of 6th International Banking and Finance Conference.

Chaudhuri said that he expects the RBI to cut the Cash Reserve Ratio (CRR) by 0.75 per cent in its annual policy, but might retain the short-term lending rate at the existing level of 8.5 per cent. ?If it (CRR cut) happens we will definitely pass the benefit to the consumers,? Chaudhuri said.

Chaudhuri however added that the bank might not cut the base rate or the minimum lending rate, which is at 10 per cent. In February, SBI slashed education loan rate by up to one per cent.

Last month, RBI had slashed CRR by 0.75 per cent from 5.5 per cent to 4.75 per cent to infuse a liquidity of Rs 48,000 crore in the banking system. CRR is the portion of deposit that banks are required to keep in cash with RBI.

Speaking about growth plans, Chaudhuri said that the bank is targeting a loan growth of 20-25 per cent for 2012-13. The bank last year registered a growth of 14 per cent in deposits and 16 per cent in credit, less than the RBI?s target for the banking system.

Chaudhuri said that margins have shown a steady growth and will remain at 3.85 per cent. ?There will be no impact on margin. In the last fiscal, we had given a guidance of maintaining 3.85 per cent on NIM, which we will stick to it. The domestic margins will remain at 4-4.25 per cent while international margins will remain at 2 per cent,? he added.

On a question on Non-performing assets (NPAs), Chaudhuri said, ?The NPA levels have already peaked and we are now winning the war against NPAs. The worst is over?The NPA situation is under control.?

SBI?s net NPA grew by 2.22 per cent during October-December 2011 against 4.19 per cent in July-September 2011.