NEWS & ADVICE : PERSONAL LOAN
An Insight into Lending Rate Changes
By Vaibhav Aggarwal
Print    Email    RSS   

Table 1: Rate reduction by Reserve Bank
(Since mid-September 2008)

(expressed as percent)

Instrument

As at

Extent of Reduction

Mid-September 2008

Early March 2009

(basis points)

Repo Rate

9.00

5.00

400

Reverse Repo

6.00

3.50

250

Cash Reserve Ratio

9.00

5.00

400

@ Percentage of NDTL.

Banks: All PSBs and most private banks lowered the rates on term deposits and PLR following - (i) RBI’s lowering of policy rates and easing of liquidity (ii) Government’s assurance for favourable policy. (See table 2)

 

Table 2: Deposit and Lending Rates Reduction during  Oct 2008 – Apr 2009*

(all rates in basis points -bps)

Bank Group

Deposit Rates

Lending Rates (BPLR)

Public Sector Banks

125-250

125-225

Private Sector Banks

75-200

100-125

Five Major Foreign Banks

100-200

0-100

* As on April 18, 2009.

It can be seen that against the RBI rate cut of 400 basis points, the BPLRs lowered by the banks between October 2008 and April 18, 2009, ranges betwen125-225 basis points: giving rise to flurry for ‘more scope for rate cuts’.


Page    | 12345 |  
(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
BPLR or Base rate?? Which is better…?
A chronicle of excesses by loan recovery...
Consolidation good for creating healthier...
Gold based financing; 'loan to buy gold...
Which is better: personal loan or gold loan?


HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive