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MUMBAI, May 3 (Reuters) - The head of State Bank of India , the country's largest lender, said there was no scope to cut lending rates at the moment, despite the central bank cutting benchmark interest rate by 25 basis points on Friday, the third cut since January.
"There is nothing to transmit. Even 1 basis point (cut) is much too high," SBI Chairman Pratip Chaudhuri told reporters.
The cost of funds continues to remain high which, is hurting banks' ability to lower lending rates, bankers said. (Reporting by Swati Pandey; Editing by Jijo Jacob)