Mumbai, Feb. 17 :    Mumbai, Feb. 17:  State Bank of India (SBI), the big daddy of the banking industry, has stirred. The country's leading commercial bank today announced that it will cut its prime lending rate by 50 basis points to 11.5 per cent. SBI's decision to pare the prime lending rate is likely to be followed up by other nationalised banks and private banks as well. In fact, soon after RBI cut the bank rate and the cash reserve ratio yesterday, IndusInd Bank announced that its board would meet on February 22 to decide on a new lending rate structure. Bank of Baroda has also gone on record saying that its board will meet early next week to review the situation and the Dena Bank board is meeting on February 23 for the same purpose. Bankers are, however, intrigued by SBI's decision not to touch deposit rates for the time being. 'As a result, the already thinning spreads would get thinner,' an analyst tracking the bank said. 'We will review our deposit rates in due course,' SBI chairman Janki Ballabh told The Telegraph. 'We will continue to improve our efficiencies to maintain our interest rate spreads.' However, Ballabh did not rule out the lowering of interest rates in the near future. According to analysts, SBI has deferred a cut in deposit rates mainly because of the apprehension of flight in deposit base. Bankers said that there would be a lot of resistance from both private and public sector banks to reduce their deposit rates because all of them are in fierce competition to mobilise deposits. With the government small savings rate still remaining higher, banks would be risking a flight of funds if they cut deposit rates, they said. However, few banks who are not comfortable with their liquidity position may wait till the announcement of the Union budget on February 28.