Union Bank, Bank Of India Follow Suit

Mumbai, October 30: | Updated: Oct 31 2002, 05:30am hrs
Union Bank of India and Bank of India (BoI) have cut their deposit rates by 25 to 50 basis points following Reserve Bank of Indias decision to reduce the bank rate by 0.25 per cent to 6.25 per cent in the mid-term review of monetary and credit policy for 2002-03.

We have cut the deposit rates by 25-50 basis points and are reviewing a reduction in the lending rate also, Union Bank chairman and managing director V Leeladhar said here on Wednesday.

The prime lending rate (PLR) of Union Bank is currently at 11 per cent while the cost of deposits in first half ended September of this fiscal is 6.5 per cent, which is 40 basis points lower than same period of last year, he added.

BoI chairman and managing director KV Krishnamurthy said they have reduced deposit rates by 0.50 per cent while lending rates would be scaled down by the same quantum from next week.