City Union Bank to cut lending rates by 50 bps

December 20th, 2008 - 7:08 pm ICT by IANS  

Kolkata, Dec 20 (IANS) The Kumbakonam-based City Union Bank will cut its benchmark prime lending rate (BPLR) by 50 basis points by the month-end, a top company official said here Saturday.”We will lower BPLR in phases. To start with, by the end of the month, we will cut 50 basis points,” bank chairman S. Balasubramanian said on the sidelines of a seminar on ‘Indian Banking Industry: Road Ahead, New Challenges and Prospects’, organised by the Indian Chamber of Commerce.

The bank’s BPLR at the moment is 14.75 percent.

City Union Bank also plans to revise its deposit rates downwards, Balasubramanian said, adding: “We expect a credit growth of 20 percent and deposit growth of 25 percent in the current fiscal.”

He said the bank has achieved a 10-12 percent credit growth in the first nine months this fiscal, while last fiscal, both the credit and deposit growth were in the tune of 35 percent.

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