The reduced rate was effective from April 1, the Central Bank said. The reduction in lending rates will be applicable to all BPLR-related portfolios and was intended to meet the genuine credit demands of needy segments, a spokesperson added.
Many state-owned and private sector banks have reduced their BPLRs to pass on the benefit of lower interest rates to their customers after the Reserve Bank of India cut its repo and reverse repo rate by 0.50 per cent each recently.
Some of the banks which had cut their rates include Union Bank, Bank of India, ICICI Bank and Punjab National Bank, among others.
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