Yes Bank announced cut down in its Prime Lending Rate by 0.50 per cent after RBI had announced cut in key short-term lending and borrowing rate by 100 basis points. More bankers have shown their acceptance to follow the signal for the southward movement of lending rates.
"After our asset-liability committee meeting today, we have decided to reduce our PLR by 0.50 per cent," the bank's Managing Director and CEO Rana Kapoor told press. With this the private lender’s PLR will cut down to 16.5 per cent.
K C Chakrabarty, Chairman and Managing Director of Punjab National Bank, is having lowest PLR in the industry, said that other banks that have not cut rates will be doing so.
In addition, PNB is also planning to analysis the asset-liability situation next month to decide on cutting interest rates further in the light of the RBI's announcement.
Agreeing with the PNB chairman and managing director remarks, ICICI Bank Joint Managing Director Chanda Kochhar said the RBI’s announcement is truly a strong signal and there is enough liquidity in the system and the rates should start reducing.
"Repo rate cut immediately means cut in deposit rates. I think that we have to give it some cooling off period and then see how the rate moves," Kochhar said.
While UCO Bank Kolkata-based public sector lender sources said the bank is planning to reduce both deposit and lending rate by half a percentage point in January.
"We are also planning to cut deposit and prime lending rate by 50 basis points from the next month," said UCO Bank Chairman and Managing Director S K Goel.
