More PSBs, private banks join rate cut bandwagon

New Delhi: State-run Syndicate Bank and United Bank of India on Saturday cut their benchmark lending rates by up to 0.30 percent, making home and auto loans cheaper for new as well as existing customers.

Private lender Karur Vysya Bank also announced a cut in its base rate by 0.35 percent to 10.40 percent. The new rate is effective from October 5, the Bank said in a statement.

State-run United Bank of India in a separate statement said that it has decided to reduce base rate or the minimum lending rate to 9.65 percent from 9.90 percent with effect from October 12.

Syndicate Bank also reduced its base rate by 0.30 percent to 9.70 percent.

Central Bank of India too has reduced base rate by 0.25 percent to 9.70 percent effective from October 8.

Besides, United Bank of India also reduced interest rate on fixed deposit across various maturities between 0.25-0.50 percent effective October 5.

For term deposit between 46-269 days, the interest rate has been lowered by 0.50 percent while for 269 days-3 years the reduction is by 0.25 percent.

Another public sector lender, Oriental Bank of Commerce (OBC) has also reduced interest rate on fixed deposit by 0.25 percent across some maturities.

Interest rate on term deposit between 91 days to 10 years will be lower by 0.25 percent effective October 5.

The rate cut has been triggered by Reserve Bank revising downward its benchmark short-term lending (repo) rate by 0.50 percent in its fourth bimonthly monetary policy review.

Following this about 20 banks from public and private sectors have cut interest rates by up to 0.40 percent. Market majors like SBI, ICICI Bank, PNB, BoB have cut rates.