UPDATE 1-Central Bank cuts PLR, home loan rates
MUMBAI, Nov 7 (Reuters) - State-run Central bank of India (CBI.BO: Quote, Profile, Research) said on Friday it would cut its prime lending rate by 75 basis points to 13.25 percent from 14.00 percent earlier, effective Nov. 10.
The bank has also reduced the floating interest rates on home loans by 25-50 basis points with effect from Monday but kept the fixed interest rates unchanged, it said in a statement.
The revised interest rate on loans upto 3 million rupees would range from 9 percent to 10 percent, while loans above 3 million rupees would carry an interest rate of 10.25 percent to 11.25 percent, depending on the tenure, it said.
On Saturday, the Reserve Bank of India cut banks' cash reserve requirements by 100 basis points to 5.5 percent, thereby releasing 400 billion rupees into the banking system.
The central bank's decision prompted lending and deposit rate cut by a slew of state-run banks.
Ahead of the announcement, shares in Central Bank of India shares ended 2.7 percent higher at 38 rupees in a firm Mumbai market.
(Reporting by Kaustav Roy; Editing by Prem Udayabhanu)
© Thomson Reuters 2009 All rights reserved
One Year Later
Mumbai held tearful memorials and police staged a show of strength as it marked the first anniversary of militant raids that killed 166 people and ratcheted up tensions with Pakistan. Slideshow | Full Coverage
Liberhan Commission Report
The government published a long awaited report, recently leaked, accusing BJP leaders of a role in the 1992 destruction of the Babri mosque in Ayodhya. Full Article
