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Our Bureau

Mumbai , Dec. 11

UNION Bank of India has taken the lead among its peer banks in adopting a new benchmark PLR, which has been fixed at 10.75 per cent.

Speaking on the sidelines of the Bank Economists Conference - 2003 here today, Mr V. Leeladhar, Chairman and Managing Director, Union Bank of India, and Chairman, Indian Banks' Association, told presspersons that the bank's board had met on Wednesday and adopted the new rate, which will be effective January.

The benchmark PLR will be a reference rate around which most of the bank's lending would take place.

Other banks too are close to finalising their benchmark rates shortly.

Mr Michael Bastian, Chairman and Managing Director, Syndicate Bank, said, the bank will announce the new rate in around 10 days time. "Our PLR may come down by 0.75 per cent to 1 per cent from the present PLR of 11.50 per cent. The new PLR of Syndicate Bank will be nearer to the yield on advances," he said.

Meanwhile, Bank of Baroda's board will meet on December 23-24, to finalise its benchmark rate. "We have already reduced our deposit rates recently. Our lending rates will also come down when we fix the benchmark PLR but at this point it is difficult to say by how much," said Mr P.S. Shenoy, Chairman and Managing Director, Bank of Baroda.

UCO Bank will also announce its new benchmark rate in around 8-10 days, while Corporation Bank is also reviewing its rates and will make an announcement by the first week of January 2004.

Mr A.K. Purwar, Chairman, State Bank of India, said the bank is in the process of reviewing its interest rates.

Article E-Mail :: Comment :: Syndication

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