Following the cut in benchmark shot-term lending (repo) rate by 0.50 per cent by the Reserve Bank of India in its bi-monthly policy review, more banks have announced a reduction in their benchmark lending rates.
State-run Syndicate Bank and United Bank of India on Saturday cut their benchmark lending rates by up to 0.30 per cent, making home and auto loans cheaper for new as well as existing customers.
While United Bank of India has reduced base rate to 9.65 per cent from 9.90 per cent with effect from October 12, Syndicate Bank reduced its lending rate to 9.70 per cent.
Allahabad Bank has informed the stock exchanges that it has cut its base rate by 25 basis points.
Consequently, the base rate will be reduced to 9.70 per cent from existing 9.95 per cent with effect from October 5.
Central Bank of India too has reduced base rate by 0.25 per cent to 9.70 per cent effective from October 8.
For term deposits between 46-269 days, the interest rate has been lowered by 0.50 per cent while for 269 days—3 years the reduction is by 0.25 per cent.
Another public sector lender, Oriental Bank of Commerce has also reduced interest rate on fixed deposits by 0.25 per cent across some maturities.
Interest rate on term deposits between 91 days to 10 years will be lower by 0.25 per cent effective October 5.
Union Bank of India announced a 0.35 per cent reduction in its base rate to 9.65 per cent. The new base rate will be applicable from October 5, the bank said in a statement.
Indian Bank, for its part, cut its base rate by 0.30 per cent to 9.65 per cent, effective October 7.
