Punjab & Sind Bank and United Bank of India today announced reduction of minimum lending rate, or base rate, by 0.25 per cent and 0.20 per cent respectively.
“The Bank has revised its ‘base rate’ from existing 10.50 per cent per annum to 10.25 per cent per annum with effective from March 1, 2013,” Punjab & Sind Bank said in a filing to the BSE.
Base rate is the minimum rate at which banks lend to customers.
“United Bank of India...has revised its base rate i.e., the benchmark rate for pricing its loan products, from existing 10.45 per cent to 10.25 per cent w.e.f. February 25, 2013,” United Bank of India said in a filing to the BSE.
Banks have been passing the benefit to the customers by cutting their lending rates post RBI’s decision to cut the repo rate in its monetary policy review in last month.
Country’s largest lender, SBI and others such as IDBI Bank, Royal Bank of Scotland, Punjab National Bank, Union Bank of India and Oriental Bank of Commerce, Syndicate Bank, Allahabad Bank, Federal Bank have already cut their lending rates.
Shares of Punjab & Sind Bank today closed at Rs 64.85 apiece on BSE, up 0.08 per cent from their previous close while shares of United Bank of India closed at Rs 67.25 apiece on BSE, down 0.22 per cent from their previous close.