State-run Oriental Bank of Commerce today said it will reduce its benchmark prime lending rate by 50 basis points to 12 per cent, with effect from April 1.
"The bank is cutting its prime lending rate by 50 basis points from 12.50 per cent to 12 per cent effective April 1," a senior bank official said.
He further added that the bank is also likely to slash its deposit rates in a day or two.
The announcement 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 that the central bank is in talks with banks to understand why lending rates are not coming down despite policy rates cut by the apex bank.
Indian Banks' Association (IBA) Chairman T S Narayanasami yesterday said there is no more headroom for banks to cut their prime lending rates (PLR) and deposit rates in the near future as bond yields are high.