• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mr Asit Pal

A.J. Vinayak

Mangalore, Nov. 5 Corporation Bank has decided to reduce its benchmark advance rate by 75 basis points with effect from November 10.

Mr Asit Pal, Executive Director of the bank, told Business Line here that the Asset Liability Committee (ALCO) of the bank met in Mangalore on Wednesday.

“The ALCO has taken a view to reduce PLR after taking the total position into consideration. We decided that it will be reduced by 75 basis points, with effect from November 10,” he said.

The Corporation Bank Benchmark Advance Rate (COBAR) will be reduced to 13.25 per cent from the present 14 per cent with effect from November 10.

Prior to this revision, the bank had revised COBAR twice since July. On July 1, COBAR was increased from 13 per cent to 13.5 per cent. On August 11, it was increased from 13.5 per cent to 14 per cent.

Asked if the bank will reduce interest rates on deposits, Mr Pal said: “We will take a decision on this after November. No reduction as of now.”

Our Bangalore bureau reports: Canara Bank on Wednesday announced the reduction in its benchmark prime lending rate by 75 basis points from 14 to 13.25 per cent, with effect from November 10.

The bank has also decided to scale down the loan rate by 25 basis points for housing loans up to Rs 30 lakh and auto loans.

The revision in the rates will be applicable to existing and new loans. The bank has also brought down the term deposit rate by 50 basis points, in the slab of 500 days to two years, from 10.5 per cent to 10 per cent with effect from December 1.

Our Kolkata bureau reports: After cutting its prime lending rate by 25 basis points to 14 per cent on Monday, United Bank of India today announced another 50 basis points cut in its PLR to 13.5 per cent, according to Mr T.M. Bhasin, officiating Chairman of the bank.

“Close to Rs 1,700 crore worth funds which were locked up in CRR have been released by the recent CRR cuts announced by the RBI. The money is now available for investment or lending purposes. We plan to pass on the benefit to our customers,” Mr Bhasin told newspersons on the sidelines of a banking seminar here on Wednesday.

United Bank, Mr Bhasin said, has also cut interest rates on housing and auto loans by 25 basis points.

More Stories on : Interest Rates | Credit Market

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line