Indian banks, mostly public sector undertakings (PSUs) have started lowering the interest rates following the change in the overall interest rate environment in the country.
| After a series of interest rate hikes (see “Once again, banks hike interest rates for deposits and lending (loans)” and “Banks increase interest rates for deposits and lending (loans)”), the interest rate scenario in India is finally changing. Recently, the Reserve Bank of India (RBI) has reduced its repo rate and the Cash Reserve Ratio (CRR). This is an incentive for banks to reduce their interest rates and Prime Lending Rates (PLR). |
On top of it, the finance minister has urged the banks to cut the interest rates.
Following these developments, the banks in India (mostly PSU banks) have started lowering their interest rates. Most banks have reduced the rate by 0.75% effective Nov 10th.
Here’s a round up.
State Bank of India (SBI)
SBI has cut its Prime Lending Rate (PLR) by 0.75% – from 13.75% to 13%. This means that the loans from SBI would now be cheaper by 0.75%. This change would be effective from Nov 10, and is also applicable to existing customers.
SBI has also reduced its deposit rates by 0.5% for deposits having a maturity between 91 days to 5 years. The rate has been cut by 0.25% for deposits having a maturity of more than 5 years. This change would be effective from Dec 1.
ICICI Bank
ICICI Bank has not cut the rates yet, but is considering it. The decision would be taken in a week’s time.
HDFC Bank
ICICI Bank has not cut the rates yet, and has not announced any plans.
Citibank
Citi Bank has cut its PLR by 0.5% – from 15.5% to 15%.
Punjab National Bank (PNB)
PNB has cut its PLR by 0.5% – from 14% to 13.5%.
Union Bank
Union Bank has cut its PLR by 0.5% – from 14% to 13.5%.
UCO Bank
UCO Bank has cut its PLR by 0.5%.
Syndicate Bank
Syndicate Bank has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
Andhra Bank
Andhra Bank has reduced its Benchmark Prime Lending Rate (BPLR) by 0.75% – from 14% to 13.25%.
This rate cut is applicable to all the loans that are linked to its PLR – including auto / vehicle, housing and education loans.
Oriental Bank of Commerce (OBC)
OBC has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
Bank of Baroda (BoB)
BoB has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
Bank of India (BoI)
BoI has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
It has also lowered the interest rate offered on fixed deposits (FDs) by 0.5%.
Canara Bank
Canara Bank has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
It has also reduced the interest on term deposits from 500 days to 2 years by 0.5% (from 10.5% to 10% per annum), effective from 1st December, 2008.
Allahabad Bank
Allahabad Bank has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
It has also lowered the interest rate offered on fixed deposits (FDs) by 0.5%.
Dena Bank
Dena Bank has cut its Prime Lending Rate (PLR) by 0.75% – from 14.25% to 13.5%.
Indian Overseas Bank (IOB)
IOB has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
Central Bank
Central Bank has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
State Bank of Travancore (SBT)
SBT has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
It has also lowered the interest rate offered on fixed deposits (FDs).
United Bank of India (UBI)
United Bank of India has cut its Prime Lending Rate (PLR) by 0.75% – from 14.25% to 13.5%.
It has also lowered the interest rate offered on fixed deposits (FDs) by 0.5%.
Corporation Bank
Corporation Bank has cut its Prime Lending Rate (PLR) by 0.75% – from 14% to 13.25%.
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