Corporation Bank annonces cut in PLR by 75 bps

Mumbai, Nov 6 (UNI) PSU lender Corporation Bank today announced cut in its prime lending rate (PLR) by 75 basis points to 13.25 per cent, effective from November 10.

Taking cue from the RBI's liquidity improvement measures, Corporation Bank has revised its benchmark PLR downward by 75 basis points from 14 per cent, the bank informed the Bombay Stock Exchange.

The rate cut comes a couple of days after Finance Minister P Chidambaram met heads of public sector banks in Delhi, to discuss the current liquidity conditions and possibilities of rate cuts.

Three PSU lenders -- Canara Bank, Bank of India and Bank of Baroda -- had slashed their PLRs by 0.75 per cent yesterday.

Following the cut, the PLRs of these four PSU banks now stand at 13.25 per cent. Other lenders, who have reduced their interest rates include Punjab National Bank, Union Bank of India.

Many other banks, including the State Bank of India, are expected to cut rates in the coming days.

Meanwhile, private and foreign bankers, who met Finance Ministry officials in Delhi yesterday, have also given an assurance to consider a downward revision in their lending rates as well. The Reserve Bank of India has taken a slew of measures over the past month to infuse liquidity into the financial system and push up growth momentum through substantial reductions in CRR, repo rate and SLR.

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