Keeping in the view of the current interest rate environment, IDBI Bank has reduced its benchmark prime lending rate (PLR) by 25 basis points. The PLR of IDBI Bank now stands at 12.75 per cent.
"This will be effective from July 1 and this reduction will apply to all the loans linked to PLR, including home loans," the bank said in a statement.
This announcement follows the bank's announcement on Monday that it has cut deposit rates by 25-50 basis points. These revised rates were effect today onwards.
IDBI Bank's interest rate on five-year tax-savings Suvidha Deposit Scheme was reduced to 8 per cent from 8.5 per cent a year.
Prior to IDBI cutting rates, other banks such as State Bank of India (SBI) and Union Bank of India (UBI), too have cut their PLR. On Wednesday, SBI brought down its PLR to 11.75 per cent, a reduction of 50 basis points. A day prior to SBI's rate cut, UBI had brought down is PLR by 25 basis point to 11.75 per cent.
