BoI, BoB reduce rates

The reduction in PLR will provide relief to both the existing and new customers of these banks, including education, auto and home loan borrowers.

These banks have also reduced their deposit rates in the range of 0.5-1 percentage point across various maturities. Besides, state-run lenders Union Bank of India and Canara Bank have also cut their rates recently.

In the private sector, the country8217;s largest housing loan financier, HDFC, and Bank of Rajasthan had cut their lending rates last week. State Bank of India had announced a 75 basis point cut in its prime lending rate and a 0.25-1 percentage point reduction in deposit rates last week.

With this, State Bank8217;s PLR now stands reduced at 12.25 per cent.