More banks slash lending rates

More commercial banks cut the interest rates following the RBI decision to slash repo,reverse repo rates and cash reserve ratio (CRR) recently...

More commercial banks cut the interest rates following the RBI decision to slash repo,reverse repo rates and cash reserve ratio (CRR) recently. State-owned Central Bank of India on Saturday cut its lending rates by 0.75 per cent effective from Monday. With the revision,Central Banks benchmark prime lending rate (BPLR) presently stands at 12.5 per cent,the bank said in a release.

Vijaya Bank has announced a reduction in its benchmark prime lending rate from 13.25 per cent to 12.75 per cent with effect from January 12,2009. While deciding on the BPLR,the banks asset liability management committee also reviewed the interest rates offered on deposits of various maturities in the light of continued downward trends in benchmark rates.

Accordingly,interest rates on the banks retail deposit schemes across various slabs have also been revised downwards in the range of 25 to 75 basis points. Our objective is to contribute progressively to a revival in the real economy. I expect the reduction in the BPLR to enable a pick-up in credit,especially from the productive sectors,as also the public at large, said Vijaya Bank CMD Albert Tauro.

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Responding to RBI policy signals,a majority of state-owned banks including leading lenders,State Bank of India (SBI) and ICICI Bank,had reduced their lending and deposit rates in the recent past. SBI effected a 0.75 per cent cut in its BPLR and a 0.25-1 per cent cut in deposit rates while India’s largest private sector lender,ICICI Bank slashed its lending and deposit rates by 0.5 per cent.

Other lenders who have recently reduced their interest rates are Bank of Baroda,Bank of India,Union Bank of India,HDFC and Bank of Rajasthan.