Mumbai: “State-run Union Bank of India has cut its prime lending rate by 50 basis points to 13.5% with effect from Monday,” a senior official said.
“We expect interest rates to soften after the measures taken by the Reserve Bank of India and taking into account the liquidity conditions,” Executive Director T.Y. Prabhu said.
On Saturday, RBI cut banks’ cash reserve requirements by 100 basis points to 5.5%, thereby releasing Rs400 billion into the banking system.