Jammu and Kashmir Bank (J&K Bank) today slashed its prime lending rate (PLR) by 175 basis points from 14.5 per cent to 12.75 per cent.
"We have realigned our interest rate structure in the context of ongoing economic slowdown. But any reduction in interest rates is based on the cost of deposits, all other risks involved and not on the whims of the bank," J&K Bank Chairman and Chief Executive Haseeb A Drabu told reporters here.
"And whatever cut in interest rate is possible for us we are going for that in the state," he said.
The bank also announced sector-wise cuts in interest rates.
Agricultural sector received major relief as the interest rates were sliced by a significant 300-375 basis points, he said.
Drabu said interest rate for advances under consumption loans were reduced by 275 basis points to 13.25 per cent from 16 per cent.
The rates in small and medium enterprises (SME) sector under various segments were slashed by 200-300 basis points.