State operated lenders PNB, BoB and OBC trim base lending rate
Q. Which 3 State run lenders have trimmed their base or minimum lending rates reaction to the policy rate cut by RBI?- Published on 01 Oct 15a. Punjab National Bank, Bank of Baroda, and Oriental Bank of Commerce
b. Dena Bank, State Bank of Travancore and Central Bank of India
c. State Bank of Travancore, Dena Bank and Oriental Bank of Commerce
d. None of the above
ANSWER: Punjab National Bank, Bank of Baroda, and Oriental Bank of Commerce
State operated lenders PNB, BoB and OBC have lowered their base or minimum lending rate with respect to RBI policy rate cut. PNB cut the base rate by 0.40 percent while BoB lowered base rate by 0.25 percent while OBC cut the rate by 0.20 percent. Base rate cit is by 40 basis points from 10% to 9.6% from October 1, 2015. BoB has decided to reduce rates by 25 basis points from 9.90% per annum to 9.65% and also lowered BPLR by 25 basis points from 14.15 percent to 13.90 percent. Lowering of rates will be effective from October 5th, 2015. OBC has slashed bank rates by 20 basis points from 9.90% per annum to 9.70% w.e.f September 30, 2015. Axis bank was the first among private lenders to announce a rate cut while SBI, Andhra Bank and Bank of India were among the first to lower base rate in range of 0.20 to 0.40 percent in response to RBI repo rate cut of 50 bps to 6.75%.
