Canara Bank, Bangalore-based second largest public sector lender, has reduced its benchmark prime lending rate (PLR) by 75 basis points, with effect from November 10, 2008, from 14 per cent to 13.25 per cent.
The bank has also decided to reduce the interest rate by 25 basis points on housing loans upto Rs 30 lakh and auto loans. This reduction is despite not having increased the rates on the then existing housing loans at the time of earlier BPLR hike during August 2008. The reduction will be applicable to existing as well as new loans, the bank said in a statement, today.
The bank has also effected a reduction of 50 basis points in its interest on term deposits at the slab of 500 days to 2 years, from 10.5 per cent to 10 per cent per annum, with effect from December 1, 2008.