Four state-owned banks including Allahabad Bank,Oriental Bank of Commerce,United Bank of India and Punjab & Sind Bank on Friday announced cut in their prime lending rates in the range of 25 to 50 basis points.
The reduction in interest rates,which will make home,auto and other loans cheaper,will be effective from April 1. Allahabad Bank has decided to reduce its benchmark prime lending rate (PLR) by 25 basis points from 12.50 per cent to 12.25 per cent,the bank informed Bombay Stock Exchange today.
It also said that interest rates on term deposits of varying maturity durations will be realigned. Similarly,Kolkata-based United Bank of India announced reduction in its PLR by 25 basis points to 12.25 per cent with effect from April 1.
With this,the existing floating rate for all categories of retail as well as corporate loans would come down,the bank said in a release.
Earlier in the day,another state-run lender Oriental Bank of Commerce (OBC) announced the decision to cut its lending rate by 50 basis points from next month.
OBC announces across-the-board reduction in its PLR by 50 basis points from 12.5 per cent to 12 per cent effective from April 1,2009, OBC said in a statement. The bank is also likely to cut its deposit rates in a day or two, a senior OBC official said.
Delhi-based Punjab & Sind Bank too said that it would reduce its prime lending rate by 50 basis points from 14 per cent to 13.5 per cent,with effect from April 1.
This reduction will be applicable to all PLR-linked loans across-the-board,” the bank said in a release. Following the reduction in PLR,the rate of interest for auto loans,education loans,home loans,SME loans and retail sectors will become more competitive and benefit a large section of bank’s clients,it added.
This is the second reduction in the PLR since December 2008. State-run Union Bank of India has already announced its decision to cut its lending rates by 0.50 per cent to 12 per cent from April 1.