Taking cues from the country's largest lender, State Bank of India, two more public sector banks -- Bank of India (BoI) and Bank of Baroda (BoB) -- today reduced their lending and deposit rates by 75 basis points each with effect from January 1.
The prime lending rates of BoI and BoB now stand reduced at 12.5 per cent, the banks said here.
The reduction in PLR will provide relief to both the existing and new customers of these banks, including education, auto and home loan borrowers.
The banks have also reduced their deposit rates in the range of 0.5-1 percentage point across various maturities.
Besides, state-run lenders Union Bank of India and Canara Bank have alo cut their rates recently.
In the private sector, the country's largest housing loan financier, Housing Development Finance Corporation, and Bank of Rajasthan had cut their lending rates last week.
BoR announced a cut in its deposit rates except in the 91-120 days' maturity. For 91-120 days' maturity deposits, customers will now get 1.25 percentage point more as interest effective from December 22, the bank said.
State Bank of India had announced a 75 basis point cut in its prime lending rate and a 0.25-1 percentage point reduction in deposit rates last week. With this, State Bank's PLR now stands reduced at 12.25 per cent.
