More state-owned banks reduce lending rates (Lead)December 29th, 2008 - 8:50 pm ICT by IANS
New Delhi, Dec 29 (IANS) Dena Bank, Punjab National Bank (PNB) and Bank of Baroda will reduce their benchmark prime lending rates (BPLR) from Jan 1, the three state-owned banks announced Monday.Dena Bank will cut its BPLR by 75 basis points from 13.5 percent annually to 12.75 percent.
PNB reduced its BPLR by 50 basis points from 12.5 percent annually to 12 percent, while Bank of Baroda slashed it by 75 basis points from existing 13.25 percent to 12.5 percent.
The latest round of lending rate cuts was triggered by the country’s largest commercial bank, the State Bank of India, which slashed its BPLR by 75 basis points Dec 20 to 12.25 percent.
This was followed by Canara Bank and Bank of India which reduced their rates by similar margin Dec 22.
According to industry sources, ICICI Bank, India’s largest private sector bank, is also mulling rate cuts.
PNB Monday said it would reduce interest rates on various retail lending schemes like floating rate housing loans and car and education loans by 50 basis points. The interest rates on fixed rate housing loans have been reduced up to 175 basis points.
It also reduced its peak deposit rate from 9.5 percent annually to 8.5 percent for deposits of one year to less than three years. Accordingly, interest rates in the time periods having maturities of 46 days and above have also been reduced by 25 basis points to 125 basis points from Jan 1.