auto loan advances of the bank has been witnessing a growth of 12 per cent.
IDBI Bank has already lowered its base rate by 0.25 per cent to 10.25 per cent effective February 1.
SBI, which has the most aggressive offering among the domestic banks, had last cut its base rate by 0.25 per cent last September following the two CRR cuts by RBI earlier.
The largest bank, has however, not cut its deposits rates as the banks asset liability committee felt its offering is among the lowest in the market at present, the official said.
"We are gaining around Rs 275 crore and passing around Rs 350 crore...this will have a very negligible impact on our margins," the SBI official said, adding the outstanding loans under the old benchmark prime lending rate will also go down by a similar 0.05 per cent.
A majority of bankers said they would transmit the benefits of the RBI rate cut.
Last month, HDFC Bank had reduced its base rate by 0.1 per cent to 9.7 per cent, the lowest in the market.
At the same time, the benchmark prime lending rate (BPLR) of the bank was also slashed by a similar margin to 18.20 per cent.