Oriental Bank, 3 other public sector banks cut prime lending rates

28 March 2009

Four public sector banks - Oriental Bank of Commerce, United Bank of India, Allahabad Bank and Punjab & Sind Bank - have cut their prime lending rates between 0.25 and 0.50 percentage points effective 1 April.

The reduction in PLR will make all lending rates linked to it, namely, home, auto and other loans, cheaper.

Oriental Bank of Commerce (OBC) said it will cut its lending rate by 50 basis points to 12 per cent from next month.

"OBC announces across-the-board reduction in its PLR by 50 basis points from 12.5 per cent to 12 per cent effective from 1April 2009," OBC said in a statement.

"The bank is also likely to cut its deposit rates in a day or two," a senior OBC official said.

Kolkata-based United Bank of India announced a 25 basis poins reduction in its PLR to 12.25 per cent effective 1 April.