SBI, Citibank, four others cut lending rates
Country’s largest bank State Bank of India, foreign lender Citibank and four other banks on Thursday announced cut in their benchmark lending rates by up to 75 basis points, thus paving way for cheaper home, personal and auto loans.
Country’s largest bank State Bank of India, foreign lender Citibank and four other banks on Thursday announced cut in their benchmark lending rates by up to 75 basis points, thus paving way for cheaper home, personal and auto loans.
SBI was the first bank to announce cut in the Prime Lending Rate by 75 basis points in the day, which was followed by Chennai-based Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Baroda also announcing cuts in their respective PLRs by the same percentage point.
“SBI has cut its PLR by 75 basis points with effect from 10th November,” Chairman O P Bhatt told reporters in Mumbai.
Accordingly, PLR will now stand reduced at 13 per cent from the present 13.75 per cent.
It was last revised upward by 100 basis points to 13.75 per cent in August.
Meanwhile, Citibank became the first foreign bank to cut PLR by 50 basis points to 15 per cent.
The decision by Citibank comes a day after the meeting of leading foreign and private sector banks with Finance Secretary Arun Ramanathan wherein they had assured of reduction in lending rates.
It is expected that the remaining PSU banks and leading private sector lenders ICICI Bank and HDFC Bank would also announce reduction in lending rates in the next few days.
Several public sector banks such as Punjab National Bank, Corporation Bank, Union Bank and Syndicate Bank have already effected cut in their PLRs.
The reduction in PLR is the offspring of easing monetary policy and liquidity in the banking system as a result of several measures undertaken by the Government and RBI over the last couple of weeks.