Premier public sector lender State Bank of India has decided to reduce both its lending and deposit rates. The bank has cut its prime lending rate (PLR) by 75 basis points with effect from November 10. Its PLR will accordingly stand reduced at 13 per cent from the present 13.75 per cent.
On the deposits front, the bank has reduced its interest rates by 50 basis points across maturities from 91 days up to five years. For maturities of five years and above, State Bank has cut its interest rates by 25 basis points. The deposit rate reductions come into effect from December 1.
Oriental Bank of Commerce (OBC) and Indian Overseas Bank (IOB) too reduced their PLRs by 75 basis points to 13.25 per cent each with immediate effect. OBC also reduced interest rates on housing loans up to Rs 30 lakh and education loans. Several public sector banks such as Punjab National Bank, Corporation Bank, Union Bank, Uco Bank and Syndicate Bank have effected cuts in their PLRs.
The cuts in interest rates were widely expected after the Reserve Bank of India slashed its cash reserve ratio (CRR) by 3.5 percentage points and the repo rate by 1.5 percentage points in recent weeks.