State Bank of India has asked the Reserve Bank to cut rates again to boost the economic growth as inflation is low.

"With ebbing inflationary pressures there may be further scope for monetary stimulus to pump up domestic demand," SBI chief Arundhati Bhattacharya said.

On June 2, RBI Governor Raghuram Rajan had boosted banks to reduce the lending rates in the Monetary Policy Statement. SBI was the first to cut its base rate.

SBI had cut its base rate by 15 basis points to 9.7 per cent. HDFC Bank also got its foot in the door by slashing the rate to 9.70 per cent last week. Similarly, ICICI Bank slashed its rate by 5 basis points to 9.70 per cent on June 25. Kotak Mahindra Bank also signed a rate cut.

"Interestingly, the risk of deficit monsoon seems to be dissipating with more than adequate rainfall in June 2015," she said.

"Looking ahead, the boost to exports in the backdrop of global economic recovery and improvement in the domestic investment climate, backed by various initiatives of the government, supports favourable growth outlook," she added.