Last week, United Bank of India had revised downwards its interest rates on its retail term deposits for 1 year to 8% and above 1 year to 7.75%.
State-owned United Bank of India (UBI) today reduced lending rate by 0.1% to 9.90%, a move which will lower EMIs for its borrowers.
On the other hand, IDBI Bank has reduced interest rate on fixed deposits on various maturities by up to 0.55% effective tomorrow.
United Bank of India in a statement said that it has reduced its base rate or minimum lending rate from 10% to 9.90% with effect from June 19.
Last week, United Bank of India had revised downwards its interest rates on its retail term deposits for 1 year to 8% and above 1 year to 7.75%.
Meanwhile, IDBI in a statement said that it has reduced interest rate in most of the short term maturity buckets of 31 days to less than 1 year by 0.25% except 6 month 1 day, where interest rate is reduced by 0.55%.
The interest rate in medium and longer term maturity buckets have been reduced by 0.15% except for 1 year to less than 2 years, where interest rate is reduced by 0.20%.
A number of banks, including largest public sector lender SBI, have cut their minimum lending rates after RBI reduced its policy rates by 0.25% in its second bi-monthly policy review for 2015-16 on June 2.
Also, several banks have cut the rates of interest they offer to customers for keeping their deposits.
Banks have now slowly started passing on the benefits of RBI's new repo rate (the rate at which it gives loans to banks), bringing down the cost of various types of consumer loans such as auto, home and retail.
Among others, Allahabad Bank, Dena Bank, Punjab National Bank, Central Bank of India and Syndicate Bank have announced cut in base rates.
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