State Bank, Vijaya Bank cut interest rates

Taking a cue from the Reserve Bank of India, State Bank of India (SBI) reduced its prime lending rates and interest on domestic term deposits by 0.25 per cent across all maturities with effect from May 5. Other banks are expected to follow suit in the coming days. Bankers are expecting a fall in housing loan rates as well.

Vijaya Bank also reduced its prime lending rate by 50 basis points to 11.5 per cent with immediate effect, close on the heels of RBI cutting bank rate by 0.25 point.

The revised State Bank Advance Rate, State Bank medium term lending rate and State Bank Short Term Advance Rate would be 10.5 per cent, 11 per cent and 10 per cent respectively, SBI said. SBI said interest on domestic term (fixed) deposits of 7-14 days duration would be four per cent per annum while for one year to less than two years it would be 5.5%.