Central Bank reduces BPLR by 0.50% from April 1, 2009

Central Bank of India has decided to slash its benchmark prime lending rate (BPLR) by 0.50% to 12%, effective from April 1, 2009.

The revision in lending rates will be applicable to all BPLR related portfolios. It is intended to meet the genuine credit demands of needy segments.

A few other state-owned and private sector banks have also cut their BPLRs after the Reserve Bank of India (RBI) recently reduced its repo and reverse repo rate by 0.50% each. The intension of the banks to cut their BPLRs is to pass on the benefit of lower interest rates to their customers.

Union Bank, Bank of India, ICICI Bank and Punjab National Bank are among the banks that have cut their prime lending rates.