In response to soft monetary stance of the Reserve Bank, three public sector lenders – Punjab National Bank, Bank of Baroda, on Monday announced a reduction in their benchmark lending rates by up to 75 basis points with effect from January 1.
The country’s second largest public sector lender, PNB, in a statement said that with the reduction, “the benchmark prime lending rate (BPLR) would come down to 12 per cent from the existing 12.50 per cent”.
Besides, PNB also announced a reduction in its peak deposit rate by 100 basis points to 8.5 per cent for deposits of one year to less than three years.
Accordingly, interest rates in the time buckets having maturities of 46 days and above have also been reduced by 25 bps to 125 basis points, the bank said.
Bank of Baroda in a communique to the Bombay Stock Exchange said, “The bank has decided to reduce its BPLR by 75 basis points from existing 13.25 per cent to 12.50 per cent with effect from January 1, 2009.”
Filed under: Home loan India, Home loan rates | Tagged: BoB, interest rate, PNB, RBI
