Banks reduce interest rates
Posted on: 08/Oct/2016 4:41:57 PM
Following the recent Reserve Bank of India decision to reduce the REPO ratio by 0.25 basic index, banks also have started reducing the interest rates.
Bank of India and Syndicate Bank have already reduced their interest rates. In this scenario, the other public sector banks Oriental Bank of Commerce and United Bank of India have announced a reduction in interest rates.
Oriental Bank of Commerce has reduced interest rates by 0.15 percent. In a special press release, it has announced that interest rates are reduced by 0.15 percent from the basic interest ratio.
Interest rates ratio for loans for a 6-month period has been reduced by 0.10 percent and will be 9.30 percent. This will come into effect from 10th October.
United Bank of India has reduced interest rates by 0.05 percent. This will be effective from 17th October.Interest rate ratio for 1-year period loans has been reduced from 9.45 percent to 9.40 percent. The interest rate ration for 6-month period loans will be at 9.35 percent.
Bank of India and Syndicate Bank have reduced the interest rate ratio by 0.05 percent to 0.10 percent. Bank of India has reduced the interest ration for 1-year period loans from 9.40 percent to 9.35 percent.Syndicate Bank has reduced from 9.55 percent to 9.45 percent. The banks have already announced that the new interest rates will be effective from 7th October.
It is worth noting that ICICI Bank and State Bank of India had reduced the interest rates even before the RBI announcement. These 2 banks have reduced the interest ratio for 1-year period loans from 9.10 percent to 9.05 percent. This is effective from 1st October.
The Reserve Bank of India reduced the REPO interest ratio by 0.25 percent last Tuesday. Following this, all other banks have announced reductions in interest ratio for short-term loans.
