BoB slashes lending rates

Calcutta, May 8: Bank of Baroda BoB has announced a substantial cut in lending rates covering a wide cross section of borrowers coupled with realignment of deposit rates with effect from May 12. The bank has reduced its prime lending rates by 75 basis points from 13.5 per cent to 12.75 per cent, a press release from the bank said.

The interest rate on pre-shipment rupee export credit has been brought down from 12 per cent to 11 per cent with effect from April 30. The reduction in lending rates was directed at moving from high cost to low cost structure which is necessary for an early revival of the industrial economy of the country, the release said.

The bank has also realigned its deposit rates across the board. The new domestic term deposit rates are five per cent for 15 to 45 days, six per cent for 46 to 90 days, seven per cent for 91 to 179 days and eight per cent for 180 days to less than one year.