Union Bank cuts PLR by 75 basis points

Shortly after the central bank cut its signalling rates Saturday and the announcement of stimulus package, leading state-owned lender, Union Bank of India today reduced its lending rates.

The bank cut its benchmark prime lending rates (PLR) by 75 basis points to 12.5 per cent "in order to ensure credit to productive sectors at lower rates for sustaining growth momentum", a press statement said here.

Earlier, new-age private sector lender, Yes Bank had announced a 0.5 per cent reduction in its PLR to 16.5 per cent on Saturday.

The cut in Union Bank's PLR will be applicable to all existing and new customers and for all portfolios related with the PLR, the Bank said.

With today's cut Union Bank has effected a 1.5 per cent reduction in its prime lending rates within 35 days responding to the policy signals of the banking regulator, the bank said.

It had cut the PLR, along with other major public sector banks, by 0.75 per cent to 13.25 per cent last month. The bank had also reduced its homeloan rates recently.

Country's largest private sector lender ICICI Bank has also reduced its interest rate for new home loans of Rs 20-lakh and below to 11.5 per cent last week.