RPT-State Bank of India says not raising interest rates

(Repeats story issued late on Friday)

MUMBAI, June 13 (Reuters) - State Bank of India (SBI.BO), India's biggest bank, said it had decided not to raise its prime lending rate at a review on Friday even though the central bank had raised its key lending rate earlier this week.

Senior officials at the state-run bank met to review interest rates after the central bank raised its repo rate by 25 basis points to 8 percent on Wednesday, the first increase in more than a year, to rein in inflation.

"There has been no rate hike today," Chief Financial Officer Ashok Mukand told Reuters over the telephone.

Data on Friday showed inflation raced to a seven-year high of 8.75 percent at the end of May.

Ahead of the news, shares in SBI ended 0.4 lower at 1,334.55 rupees in a Mumbai market that ended 0.4 percent down. (Reporting by Narayanan Somasundaram; Editing by John Mair)