The Hindu Business Line : Canara Bank cuts BPLR by 25 basis points

Bangalore, Feb. 12 - Canara Bank has reduced its benchmark prime lending rate by 25 basis points.The revised BPLR effective from February 16 is 13 per cent, a bank statement said. The rate cuts follow the Union Finance Minister’s recent advice to banks to reduce lending rates.

However, despite the drop in BPLR, Canara Bank is already lending at lower rates. Canbank’s home loan rates are already advanced at 10 per cent, depending on the period and the amount. Besides, many of the banks are already lending to AAA rated corporates at steep discounts to the BPLR, ranging from 200 to 250 basis points.

Moreover, corporates with loan exposures in excess of Rs 10 crore are expected to get themselves rated before March 2009, in line with Basel II guidelines. Depending on the credit assessments, lending rates are also expected to undergo a change, bankers said.

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