Mumbai: State-run Union Bank of India on Monday cut its lending rates, joining a list of banks that have done so following a meeting 19 June meeting with union finance minister Pranab Mukherjee. .The bank reduced its prime lending rate, or the rate at which a bank lends to its most creditworthy customer, by 25 basis points to 11.75% while keeping its deposit rate intact at 8%. The new lending rate will be effective 1 July, the bank said in a statement. One basis points is a hundredth of a percentage point.
Meanwhile, another public sector lender IDBI Bank Ltd lowered its deposit rates by 25-50 basis points in various maturities effective 25 June. Following this, the interest rate on five-years deposit has also been reduced to 8% from 8.50% per annum.