State Bank of India has cut BPLR by 75 bps to 12.25% with effect January 1, 2009. The bank has also cut its deposit rates by 25-100 bps depending on the slabs with effect January.

 

Rates have been cut across retail and corporate loans. Education, home, and auto loan rates will now come down and all floating rate loans will be revised. The cost of funds coming down will mean enough liquidity in the market. The bank will be monitoring the interest rate movement.

 

Meanwhile, Bank of Baroda has cut retail lending rates by 75 bps to 12.5% and deposit rates by 0.5-1% across all maturities with effect from January 2009. The bank said all floating rates will now stand revised.

 

Bank of India has also cut BPLR by 75 bps to 12.5% and also cut 1-year term deposit rates to 8.5% from 9.75% effective January 1, 2009.