IDBI Bank cuts home loan, deposit rates

On the heels of leading state-owned banks cutting their lending rates, IDBI Bank today slashed its home loan rates by up to one per cent for new customers effective from tomorrow.

The bank also reduced its deposit rates across certain maturities by 0.25-0.5 per cent effective from March 6, a release said here.

Floating rates for home loans up to Rs 20-lakh, has been reduced by one per cent while for loans above Rs 20-lakh the reduction will be by 0.5 per cent, the bank said.

With this, IDBI Bank's customers can avail home loans up to Rs 20 lakh for 9.75 per cent per annum and loans above Rs 20 lakh at 10.25 per cent.

The rate cut has come shortly after a host of leading state-owned lenders, such as State Bank of India, Punjab National Bank and Union Bank of India revised their lending rates downwards to pass on the benefits of recent RBI policy actions to clients.

With the reduction in deposit rates, IDBI Bank's deposits having 1,100 days maturity will now carry a rate of 9.25 per cent as against 9.5 per cent earlier.