Allahabad Bank cuts rate by 25bps

Allahabad Bank has cut the benchmark prime lending rate (BPLR) by 25 basis points.

In a statement to the Bombay Stock Exchange, the bank said that it has brought down its BPLR from the 13.25% to 13% with effect from April 1, 2008. It further said that the reduction is in regard to the present market scenario and the need to provide credit to productive sectors at afforadable rate.

The bank has already announced a cut in the interest rate of fresh housing loans by 25 basis points in both floating and fixed term loans with effect from April 01, 2008 for loans up to Rs 20 lakhs on all maturities.

With the present cut in BPLR, in actual terms, interest on housing loan up to Rs 20 lakhs in floating term loan will stand reduced by 50 basis points for all fresh sanction effective from April 01, 2008.