3 PSU banks cut PLR by 0.75 pc

A day after Finance Minister P Chidambaram met state-owned banks8217; heads to discuss the possibility of rate cuts, three PSU banks today reduced their benchmark prime lending rates by 0.75 per cent. Bank of India has reduced its PLR effective from tomorrow. The bank has also announced a 0.5 per cent cut in its deposit rates from December 1. Other leading lenders Bank of Baroda and Canara Bank also slashed their PLRs from November 10, officials from these banks told PTI here.

While BOI and Canara Bank have also reduced their deposit rates by 0.5 per cent, BoB said it may wait for some more time prior to cutting its deposit rates. Following the cut, the PLRs of these three banks now stand at 13.25 per cent.

The reduction in BPLR will be applicable to BoB8217;s all loans except home advances, where the interest rates are already lower, its Executive Director, V Santhanaraman said. The cut in Canara Bank8217;s PLR will be applicable to all PLR-linked lending portfolios except home and auto loans, an official said. The bank has decided to effect a 0.25 per cent reduction in its home and vehicle loans, the official said.

Canara bank has also reduced its 500-days-2 years deposit rate by 0.5 per cent effective from December 1.