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Canara Bank has pared its minimum benchmark lending rate (also known as the base rate) from 10.25 per cent to 9.95 per cent. The public sector bank has also cut deposit rates by up to 50 basis points.
Banks usually give loans at a mark-up to the base rate. All interest rate changes by the bank are effective from July 8.
One basis point is equal to one-hundredth of a percentage point.
On the term deposits (of less than Rs 1 crore) side, the bank has effected a 50-basis points cut in interest on deposits of 270 days to less than one year maturity to eight per cent (from 8.50 per cent), the bank said in a notice to the stock exchange.
The new interest rates on term deposits in the 180 days to 269 days, and one year to less than two years maturity slabs are seven per cent (7.25 per cent earlier) and 8.75 per cent (9 per cent), respectively.
The new interest rate on term deposits in two maturity buckets — two years to less than three years, and three years to less than five years — will be 8.80 per cent (nine per cent).
Banks usually give loans at a mark-up to the base rate. All interest rate changes by the bank are effective from July 8.
One basis point is equal to one-hundredth of a percentage point.
On the term deposits (of less than Rs 1 crore) side, the bank has effected a 50-basis points cut in interest on deposits of 270 days to less than one year maturity to eight per cent (from 8.50 per cent), the bank said in a notice to the stock exchange.
The new interest rates on term deposits in the 180 days to 269 days, and one year to less than two years maturity slabs are seven per cent (7.25 per cent earlier) and 8.75 per cent (9 per cent), respectively.
The new interest rate on term deposits in two maturity buckets — two years to less than three years, and three years to less than five years — will be 8.80 per cent (nine per cent).
Interest rates cut
The bank has also cut interest rates on non-resident (external) deposits (of less than Rs 1 crore) by up to 25 basis points.
The new interest rate on NRE term deposits in the one year to less than two years maturity bucket is 8.75 per cent (nine per cent).
The new interest rate on NRE term deposits in two maturity buckets — two years to less than three years, and three years to less than five years — will be 8.80 per cent (nine per cent).
After Union Finance Minister P. Chidambaram urged public sector bank chiefs to cut their lending rates at a meeting on Wednesday, banks have started taking action. Bank of India was the first to get off the block, cutting its base rate to 10 per cent from 10.25 per cent.
Source: thehindubusinessline
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