Banks follow SBI in reducing lending rates

UCO cuts retail loan rates, SBBJ pares base rate

A day after the country's largest lender State Bank of India (SBI) slashed its base rate, a couple of public sector banks have announced a reduction in their lending rates.

Kolkata-based UCO Bank said it has reduced its interest rate on loans to retail, mid-corporate, SME and farm sectors by 25-150 basis points with immediate effect. The state-run lender has pared interest rate on home loans by 25 basis points, car loan rates by 50 basis points and educational loan rates by 150 basis points.

In addition, the bank will offer loans above Rs 1 crore to retail, mid-corporate, SME and farm sectors at 25-150 basis points lower rates.

State Bank of Bikaner and Jaipur (SBBJ) went a step ahead and cut its base rate or minimum lending rate by 25 basis points to 10.25 per cent. The new rates will be applicable from October 1, 2012. The bank has also reduced its deposit rates by 25 basis points for tenures between one to five years.