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More banks cut lending rates
Retail borrowers and India Inc may now be able to breathe a little easier. Public sector banks (PSBs), taking cue from last Saturday’s liquidity easing measures by the Reserve Bank of India (RBI), have started cutting their benchmark prime lending rates (BPLR). Union Bank of India today announced a 50 basis points cut in its BPLR to 13.5 per cent.
Retail borrowers and India Inc may now be able to breathe a little easier. Public sector banks (PSBs), taking cue from last Saturday's liquidity easing measures by the Reserve Bank of India (RBI), have started cutting their benchmark prime lending rates (BPLR). Union Bank of India today announced a 50 basis points cut in its BPLR to 13.5 per cent.
"We have reduced our BPLR by 50 basis points on account of the 350 basis points reduction in the Cash Reserve Ratio (CRR) effected by RBI. The bank does not earn anything on the funds impounded under CRR. Thanks to the CRR cut, we can now deploy the funds released at an average yield of 10.50 per cent," said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India.
Earlier, the bank had announced a downward revision in interest rates on home loans by 50 basis points with effect from October 21. The bank also plans to discontinue its 900-days fixed deposit scheme, which offers a high interest rate of 10.5 per cent, Mr Nair said.
