After the Reserve Bank of India (RBI) decreased key rates, many banks in India have lowered their deposit and lending rates.
| The Reserve Bank of India (RBI) has recently decreased key rates yet again, and many banks in India are following suit. |
Here are the details of the interest rate reductions by various banks in India.
State Bank of India (SBI)
SBI has lowered the interest rate it offers on various fixed deposits by 0.25%, effective May 4th, 2009.
This reduction follows the interest rate cut on 13 April 2009, when SBI had reduced the fixed deposit rates by 0.25% – 0.5%.
Following this latest rate cut, the rate of interest for its 1000 day blockbuster FD is 8% (from the earlier 8.25%).
The interest rate for a deposit of 15 to 45 days will be 3.75%, whereas 1 year to less than 2 years deposits will now fetch 7.5% (against 7.75% earlier).
Deposits of 2 years to less than 1000 days tenure will have a rate of 7.75% (from an earlier 8%), whereas deposits for 1001 days to less than 3 years and 3-5 years deposits would earn interest of 7.75% (from an earlier 8%).
5 to 8 years and 8 to 10 years deposits will carry interest rates of 8% (from an earlier 8.25%) and 8.25% (from an earlier 8.5%) respectively.
ICICI Bank
ICICI Bank has reduced its floating reference rate (FRR) by 0.5% to 13.25%.
It has also reduced its benchmark advance rate (I-BAR) (or the benchmark prime lending rate – BPLR) by 0.5% to 16.25%.
ICICI Bank has reduced its rates by 0.25% to 0.50% for retail fixed deposit of different maturities.
It now offers an interest rate of 8.25% on its 390 days, 590 days and 990 days special deposits scheme.
It is offering the rate of 3.25% for 15 to 29 days deposits, and a rate of 3.5% for 30 to 45 days deposits.
The rate of interest for deposits between 2 years and 10 years is 8.25%.
The revised deposit rates are applicable from 24 April, 2009.
Punjab National Bank (PNB)
PNB has slashed its benchmark prime lending rate (BPLR) by 0.5% to 11%. This reduction in BPLR would be applicable to all existing and new loans.
The rate of interest on car loans, education loans, reverse mortgage and personal loans have been reduced by 0.25% to 0.5%.
The floating rate for home loans has been reduced by 0.25%. Depending on the tenure and loan amount, the new rate of interest would be between 8.75% and 10%.
The interest rate on educational loans linked to the BPLR has also been reduced by 0.5%.
PNB has also revised its fixed deposit rates downwards by 0.25% to 1% across all maturities.
The interest rate for a fixed deposit of 3 years to 5 years duration would now be 7.5% (from the earlier 8%).
These new interest rates are effective from 1 May 2009.
Citibank
Citibank has cut its prime lending rate (PLR) by 0.25% to 14.75%.
The rate cut is effective 1 May, 2009.
Bank of Rajasthan
Bank of Rajasthan has cut its benchmark prime lending rate (BPLR) by 0.50% to 15%.
This new rate is effective from 1 May 2009.
Lakshmi Vilas Bank (LVB)
Lakshmi Vilas Bank has reduced its BPLR by 0.25% to 15%.
LVB has also cut the rate of interest on term deposits by 0.25% to 0.5% depending on the tenure of the fixed deposit.
These new rates will be effective from 4 May, 2009.
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