Corporation Bank cuts PLR by 75 bps

Corporation Bank cuts PLR by 75 bps

Mumbai: PSU lender Corporation Bank today said it has cut its prime lending rate (PLR) by 75 basis points to 13.25%, effective from 10 November.

Taking cue from the RBI’s liquidity improvement measures, Corporation Bank has revised its benchmark PLR downward by 75 basis points from 14%, the bank said in a filing to the Bombay Stock Exchange.

The rate cut comes a couple of days after Finance Minister P Chidambaram met heads of public sector banks in Delhi to discuss the current liquidity conditions and possibilities of rate cuts.

Besides, three PSU lenders - Canara Bank, Bank of India and Bank of Baroda - have slashed their PLR by 0.75% yesterday.

Following the cut, the PLRs of these four PSU banks now stand at 13.25%.

Other lenders, who have reduced their interest rates include Punjab National Bank, Union Bank of India.

Many other banks, including the country’s largest, State Bank of India, are expected to cut rates in the coming days.

Meanwhile, private and foreign bankers, who met Finance Ministry officials in Delhi yesterday, have also given an assurance to consider a downward revision in their lending rates as well.

The Reserve Bank of India has taken a slew of measures over the past month to infuse liquidity into the financial system and push up growth momentum through substantial reductions in CRR, repo rate and SLR.

Shares of Corporation Bank were trading at Rs217, down 1.92% in the morning trade on the BSE.