Four public sector banks (PSB) on Wednesday reduced their benchmark prime lending rate by 50-75 basis points, a day after the bank chiefs met Finance minister P Chidambaram in New Delhi to review liquidity conditions.
Bank of India (BOI) cut its BPLR by 75 basis points to 13.25 effective from tomorrow. It has also decided to revise its deposits rates by 50 basis points from December 1, 2008.
Mangalore-based Corporation Bank will also reduce PLR by 75 bps to 13.25 per cent from Monday. Bank of Baroda has also decided to reduce the PLR by 75 bps to 13.25 per cent from Monday. Asked about the downward revision in deposit rates, its chairman and managing director M D Mallya said "we will review the rate structure. Unlike some other banks, BOB had not raised deposit rates in the recent past, he added.
Kolkata-based United Bank of India also reduced its PLR for the second time. It cut PLR by 50 bps to 13.50 per cent. Prior to the meeting with the finance minister, the bank had announced a 25 basis point reduction in the key rate. The bank said it will reduce the interest rate on deposits by 50 basis points to 10 per cent by December.
State Bank of India, India's largest lender, is expected to cut its PLR shortly.