New Delhi, June 7 -- Lending rates across the banking sector are projected to decline by approximately 30 basis points in response to recent monetary policy adjustments, according to a comprehensive analysis released by the State Bank of India.

The reduction is anticipated to provide immediate relief to borrowers while presenting margin challenges for financial institutions.

The policy rate reduction is expected to have swift transmission effects, particularly impacting loans linked to the External Benchmark Lending Rate.

All Scheduled Commercial Banks, which hold a 60 percent share of the EBLR-linked loan portfolio, will experience immediate rate adjustments. This mechanism ensures that the benefits of lower policy rates reach consume...