Mumbai: Chennai-based Indian Bank today reduced the benchmark lending rates by 75 basis points in tandem with other state-run banks.
In a filing to the Bombay Stock Exchange, the bank said that it has decided to reduce the Benchmark Prime Lending Rate (BPLR) from 14% to 13.25% with effect from 10 November.
Several PSU banks, including market leaders State Bank of India and Punjab National Bank, have already cut the benchmark lending rates following their meeting with the Finance Minister P Chidambaram earlier this month.
As interest rates on advances are mostly linked to the BPLR, the loans for housing, auto etc would become cheaper following reduction of the benchmark rates by the banks.
The other PSU banks which have lowered their BPLRs include Bank of Baroda, Union Bank of India, UCO Bank, IDBI Bank, Oriental Bank of Commerce and Syndicate Bank.