Mumbai: Citibank N.A on Wednesday reduced its prime lending rate (PLR) by 25 basis points to 14.75% from 15%, effective 1 May. The PLR is the rate of interest at which banks lend to their most creditworth customers. One basis point is a hundredth of a percentage point.
“This reduction is in line with the prevailing monetary policy of the RBI, lower deposit rates and overall cost of funds,’’ the bank said in a statment. Citibank last revised its PLR in November, when the rate was lowered from 15.50% to 15 %. Foreign and private banks have been under increasing pressure from the Reserve Bank of India as well as Prime Minister Manmohan Singh, for not sufficiently to pass on the benefits of a series of rate cuts by RBI. Between October 2008 and 18 April 2009, the five major foreign banks in India had cut their PLRs by 100 basis points.