Uco, Allahabad Bank, Ubi Set To Lower Pl

With the low interest regime looming over the banking industry, three scheduled banks are likely to slash their prime lending rates (PLR).

Allahabad Bank chairman-cum-managing director, Harbhajan Singh, said the existing interest rate is being reviewed and a decision will be arrived at soon.

The prime lending rate at Allahabad Bank is currently ruling at 14 per cent. Indications are that it may be brought down by 50 basis points to 13.50 per cent soon. A board meet will soon be convened or a note will be circulated among board members.

Allahabad Bank had enhanced its interest rates on domestic term deposits with effect from 19 March last. The revised rates range from 9.5 per cent to 12.5 per cent. It is expected that the deposit rates will also be recast to bring them in tune with the changed scenario.

 

In the case of Uco Bank, the revised PLR at 14 per cent came into force on May 1. But Sharda Singh, chairman-cum-managing director, does not rule out the possibility of another change in PLR though it will be done in a quick succession. PLR may be reduced by 50 basis points to 13.5 per cent in this bank too.

Uco Bank interest rates on domestic term deposits were also changed in February last.

United Bank (UBI) CMD, Biswajit Chowdhury, also felt that the PLR might have to be reduced once again. The bank had cut PLR by 100 basis points to 13.5 per cent only on April 20 last, and the maximum interest rate band over PLF was fixed at 4.5 per cent.

The PLR of UBI is set to be brought down to 13 per cent or even to 12.75 per cent though a formal decision may take some time.