State-run, Dena Bank has declared a cut in their interest rates of new housing loans, auto and trade finance loans by 25 to 50 basis points.
A press release issued by the bank stated that home loan rates and interest rates on trade finance scheme will be slashed by 25 basis points where as interest rates on auto loans will see a reduction of 50 basis points. The new rates of the bank are effective from March 16th.
The rate cut by the public lender was publicized close to the announcement made by the private leader, ICICI Bank. The bank has cut its lending rates on floating home loans for new borrowers as a response to the monetary policy actions taken by the RBI.
Many others have answered to the signal sent by the apex body to slashes the interest rates. Recently Canara Bank has also reduced its home loan rates and fixed them for a period of five years. Others like Bank of Baroda, Union Bank of India and United Bank of India have lowered their benchmark prime lending rates (BPLR).
BoB and Union Bank has cut the PLR by 50 basis points to 12% with effect from April 1st where as United Bank has lowered the PLR to 12.5% from March 5th.
Recently Dena Bank has also deferred its plan of entering into the general insurance space due to the current economic slowdown.