The Central Bank of India has announced a half a percentage point (50 basis points) cut its medium-term prime lending rate (MTPLR) to 12 per cent.
This was done to realign its lending rates with peer public sector banks (PSBs). This will take effect on April 1.
Central Bank is the first bank to cut its PLR after the budget which has pared the administered rate for small savings by 50 basis points.
In November last year when the Reserve Bank of India (RBI) cut the bank rate by 50 basis points to 6.50 per cent, the PSBs refrained from cutting their prime lending rates against the backdrop of tardy credit offtake.
Despite the cut, Central Bank
