With the Reserve Bank of India’s rate cut early last week, some more public sector banks (PSBs) and private banks cut lending rates on Saturday, making home and auto loans cheaper for their new as well as existing customers.
State-owned banks include Union Bank of India, United Bank of India, Indian Bank, Syndicate Bank and United Bank among others and private lenders like Karur Vysya Bank and Syndicate Bank also followed the rate-cut trend after the bigger player like ICICI Bank.
State-run Syndicate Bank and United Bank of India on Saturday cut their benchmark lending rates by up to 0.30 per cent, while Karur Vysya Bank also announced a cut in its base rate by 0.35 per cent to 10.40 per cent. "The new rate is effective from October 5," the Karur Vysya Bank said in a statement.
Mumbai-based Union Bank of India also announced a 0.35 per cent reduction in its base rate to 9.65 per cent. "The new base rate will be applicable from October 5. We have reduced our base rate by 35 basis points from 10 per cent to 9.65 per cent," the bank said in a statement.
United Bank of India in a separate statement also said that it has decided to reduce base rate or the minimum lending rate to 9.65 per cent from 9.90 per cent with effect from October 12.
Chennai-based Indian Bank on Saturday cut its base rate by 0.30 per cent to 9.65 per cent, effective October 7. "Indian Bank has reduced its base rate or minimum lending rate by 30 basis points to 9.65 per cent," the bank said in a statement.
Syndicate Bank also reduced its base rate by 0.30 per cent to 9.70 per cent. Central Bank of India too has reduced base rate by 0.25 per cent to 9.70 per cent effective from October 8.
Besides, United Bank of India also reduced interest rate on fixed deposit across various maturities between 0.25-0.50 per cent effective October 5. For term deposit between 46-269 days, the interest rate has been lowered by 0.50 per cent while for 269 days-3 years the reduction is by 0.25 per cent.
Another public sector lender, Oriental Bank of Commerce (OBC) has also reduced interest rate on fixed deposit by 0.25 per cent across some maturities. Interest rate on term deposit between 91 days to 10 years will be lower by 0.25 per cent effective October 5.
The rate cut has been triggered by Reserve Bank of India revising downward its benchmark short-term lending (repo) rate by 0.50 per cent in its fourth bimonthly monetary policy review.