Allahabad Bank Has Approved Upward Revision In BPLR - Aug 09 , 2008

Allahabad Bank has informed that the Board of Directors of the Bank at its meeting held on August 08, 2008, has approved upward revision in BPLR from existing rate of 13.50% to 14% w.e.f. August 08, 2008.

However, the above change in BPLR will not be passed on to the existing Housing Loan, Personal Loan, Education and Car / Auto Loan customers. Moreover the above change in BPLR will also be not applicable to the new housing loans up to Rs 30 lacs.

IDBI Not To Cut Lending Rate

Mumbai: With inflation spiralling to a three-year high of 7.41 per cent, leading lender IDBI on Friday said it would be not be cutting its Benchmark Prime Lending Rates (BPLR) in the near future.

The bank was earlier mulling a cut in its BPLR which presently stands at 13.75 per cent.

Last month, it had announced its decision to effect a 0.50 per cent downward revision, which it subsequently put on hold.

Citing "prevailing market conditions", IDBI had then said that it would review the situation in about two weeks time.

"After seeing the latest inflation figure (7.41 per cent), we have decided not to reduce our BPLR. A cut in lending rates may not be prudent since the Reserve Bank might hike the Cash Reserve Ratio (CRR) in its credit policy if inflation remains high," IDBI's Chief Financial Officer R K Bansal told PTI here today.

The Reserve Bank is scheduled to announce its monetary policy for FY 09 on April 29.

Bansal said that IDBI might consider a hike in lending rates by 0.50 per cent if the apex bank hiked CRR in its April 29 policy.

"The bank may consider a hike in its lending rates if the RBI increases the reserve ratio. There is no other option before the (banking) industry other than hiking rates in that case," Bansal said.

Canara Bank Slashes BPLR By 25 Bps

Bangalore: Canara Bank has decreased its benchmark prime lending rate by 25 basis points. The revised BPLR effective from February 16 is 13 per cent. The rate cuts follow the Union Finance Minister''s recent advice to banks to reduce lending rates. Canbank''s home loan rates are already came on at 10 per cent, depending on the period and the amount. Besides, many of the banks are already lending to AAA rated corporates at steep discounts to the BPLR, ranging from 200 to 250 basis points. Moreover, corporates with loan exposures in excess of Rs 10 crore are hoped to get themselves rated before March 2009, in line with Basel II guidelines.