State-run lenders Oriental Bank of Commerce (OBC) and Allahabad Bank today announced cut in their prime lending rates (PLR) by 50 and 25 basis points, respectively, with effect from next month.
"Oriental Bank of Commerce announces across-the-board reduction in its PLR by 50 basis points from 12.5 per cent to 12 per cent, effective from April 1, 2009," OBC said in a statement.
"The bank is also likely to slash its deposit rates in a day or two," a senior OBC official said.
Meanwhile, Allahabad Bank has also decided to reduce its benchmark PLR by 25 basis points from 12.50 per cent to 12.25 per cent with effect from April 1, the bank informed the BSE.
Further, it has also realigned interest rate on deposits for various maturity durations, effective from April 1.
The announcements came amid Cabinet Secretary K M Chandrasekhar's statement that banks have not responded adequately to monetary easing by the RBI.
RBI Governor D Subbarao had yesterday said the central bank is in talks with banks to understand why lending rates are not coming down despite policy rate cuts by it, while Indian Banks Association (IBA) Chairman T S Narayanasami had said there is no more headroom for banks to cut their PLRs and deposit rates in the near future as bond yields are high.