Mumbai: Taking cues from the country’s largest lender, State Bank of India (SBI), two more public sector banks Bank of India (BoI) and Bank of Baroda (BoB) on Monday slashed their lending and deposit rates by 75 basis points (bps) each with effect from 1 January.
The prime lending rates (PLR) of BOI and BOB now stand reduced at 12.5%, the banks said in Mumbai.
The reduction in PLR will provide relief to both the existing and new customers of these banks, including education, auto and home loan borrowers.
The banks have also reduced their deposit rates in the range of 0.5% to 1% across various maturities.
Besides, state-run lenders Union Bank of India (UBI) and Canara Bank have also reduced their rates recently.
In the private sector, the country’s largest housing loan financier, Housing Development Finance Corporation (HDFC), and Bank of Rajasthan (BoR) had slashed their lending rates last week.
BoR announced a cut in its deposit rates except in the 91 to 120 days maturity. For 91 to 120 days maturity deposits, customers will now get 1.25% more as interest effective from 22 December, the bank said.
SBI had announced a 75 bps cut in its PLR and a 0.25% to 1% reduction in deposit rates last week. With this, SBI’s PLR now stands reduced at 12.25%.