Dena Bank, Union Bank cut lending rate by up to 0.25%

Dena Bank, Union Bank cut lending rate by up to 0.25% New Delhi: Dena Bank and Union Bank of India Friday reduced benchmark lending rate by up to 0.25 percent, making loans including home and corporate cheaper for borrowers.

The bank has decreased its base rate or minimum lending by 0.20 percent to 10.25 percent from 10.45 percent, Dena Bank said in a statement.

At the same time, Union Bank of India reduced its base rate by 0.25 percent to 10.25 percent.

The new rate of both the banks would be effective from tomorrow.

With the reduction in base rate the interest rate on home and car loans will come down to 10.25 percent and 10.70 percent respectively.

Several lenders, including State Bank of India (SBI), Punjab National Bank, Bank of India, Bank of Baroda and IDBI Bank have cut lending rates following easing of monetary policy by the Reserve Bank.

In its third quarter policy review on January 29, RBI had lowered key short-term lending rate by 0.25 percent and also injected Rs 18,000 crore liquidity through similar reduction of Cash Reserve Ratio.

The repo rate, at which RBI lends to banks, was eased after a gap of nine months as the central bank fought the stubbornly high inflation through tight money policy, leading to high interest rate regime.

PTI