| Rational, not administered | 23-OCT-09 |
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| The benchmark prime lending rates that banks use to offer a signpost to their lending rate structures have lost much of their significance and utility, thus prompting a study by the Reserve Bank of India (RBI) of what has been happening and inviting public discussion on proposals for a new system of base rates. The benchmark rates, which should reflect changes in the policy rates of RBI, have ceased to do so. Besides, sub-benchmark rates now abound, despite benchmark rates being based on the logic of prime lending rates which only the best customers of banks get. A key fallout from the present system is that retail customers of banks borrowing on floating rates, linked to benchmark rates, often do not see a positive impact on their rates of the RBI signalling a downward movement in interest rates. |
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| Sub-BPLR loans make a comeback | 06-APR-09 |
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| Loans at a discount to the benchmark prime lending rates (BPLR) of banks are back with a majority of the fresh loans being disbursed at sub-PLR rates. |
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| OBC, Allahabad Bank cut prime lending rates | 27-MAR-09 |
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| State-run lenders Oriental Bank of Commerce (OBC) and Allahabad Bank today announced cut in their prime lending rates (PLR) by 50 and 25 basis points, respectively, with effect from next month. |
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| Govt banks to see higher pressure on margins | 07-FEB-09 |
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| Public sector banks (PSBs) could see higher pressure on their net interest margins (NIMs) in the coming months as they have mopped up large amounts of deposits at higher rates and have also effected steep cuts in lending rates between November 2008 and January 2009. NIM is the difference between the cost of funds and the yield on advances. |
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| Sub-PLR loans back in vogue | 03-FEB-09 |
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| Banks may not be reducing their prime lending rates (PLR), but they are selectively lowering interest rates for specific segments and certain clients. |
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| PNB, Dena Bank cut lending rates | 30-DEC-08 |
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| ICICI Bank says it will reduce rates early next month
Punjab National Bank (PNB) and Dena Bank today announced a reduction in their benchmark prime lending rates (BPLR), while the country’s |
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| Banks to finalise home loan package today | 11-DEC-08 |
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| In an effort to boost credit flow to the housing sector, public sector banks are going to finalise the new interest rate regime for home loans up to Rs 20 lakh tomorrow. |
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