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Mr K.R. Kamath

Our Bureau

Mumbai, Nov. 6 More banks cut their benchmark prime lending rates following infusion of liquidity and easing of rates by the Reserve Bank of India.

On Thursday, Bank of Baroda, Central Bank of India and Dena Bank were among the banks that announced a reduction of 75 basis points in their BPLR, with effect from November 10.

BoB cut its BPLR from 14 per cent to 13.25 per cent. Dena Bank cut its BPLR from 14.25 per cent to 13.5 per cent. Central Bank of India cut its PLR from 14 per cent to 13.25 per cent.

The cut will lead to a reduction in the rates of all loans, fixed and floating, which are linked to the BPLR. It also includes retail loans, such as home loans, personal loans, auto loans and education loans.

Mr Alok K. Misra

This change would benefit all loans linked to BPLR, including loans given for housing, education and vehicles. The bank is watching closely the position on deposit front and a decision to bring down deposit rates will be taken shortly, according to a release.

Our Kolkata Bureau reports: Allahabad Bank has announced a 75 basis points cut in its prime lending rate at 13.25 per cent, down from 14 per cent, effective November 10.

Mr K.R. Kamath, Chairman and Managing Director of the bank, said the “recent cut in Cash Reserve Ratio and repo rates announced by the Reserve Bank of India has pumped in surplus liquidity into the system.

Taking into account the present liquidity situation and market scenario we have decided to cut PLR by 75 basis points,” Mr Kamath said. There was a need to provide need-based credit to productive sectors, he observed.

The bank has also announced a reduction of 50 basis points on interest rates on deposits effective December 1, he said.

Our Thiruvananthapuram Bureau reports: State Bank of Travancore (SBT) has reduced its prime lending rate (PLR) by 75 basis points to 13.25 per cent.

The new PLR will come into effect from November 8, according to a statement from the bank.

The bank has decided to lower the PLR in the context of the reduction in CRR and SLR by the Reserve Bank recently. All borrowers, whose loan is linked to PLR, will be benefited by the cut in PLR.

The bank has also decided to lower its deposit rates from December 1, after a review in this regard, says the statement.

Our New Delhi Bureau reports: Oriental Bank of Commerce has decided to reduce its Prime Lending Rates by 75 basis points with immediate effect.

Mr Alok K. Misra, Chairman & Managing Director, Oriental Bank of Commerce, said, “We are happy to announce a reduction in the PLR by 75 basis points to 13.25 per cent per annum with immediate effect. We have also cut the interest rates on housing loans up to Rs 30 lakhs and interest rates on education loans have been brought down.”

More Stories on : Interest Rates | Credit Market

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