In a move that will make housing and auto loans cheaper, four public sector banks, led by State Bank of India, today announced slashing their prime lending rates by 0.25-0.50 percentage points.
For the second time in less than 10 days, the country's largest lender SBI slashed its prime rate by 0.25 percentage point to 12.25 per cent. The bank had announced on February 11 another cut of 0.25 percentage points effective February 16.
"The benchmark prime lending rate (PLR) is revised downward by 0.25 percentage point from 12.50 per cent to 12.25 per cent with effect from February 27," SBI told BSE.
The reduction in rate is likely to moderate lending rates for all categories of borrowers, including housing, corporate and car loans.
Moreover, Bank of India and Union Bank also announced cut their prime rates by 0.5 percentage points to 12.75 per cent today. Bangalore-based Canara Bank also cut its rate by 0.25 percentage points to 12.75 per cent.
Earlier last month, HDFC reduced its prime rate by 0.25 percentage points effective February 1, while PNB Housing Finance slashed rates by 0.5 percentage points.