The public sector lender, State Bank of Travancore, has reduced its benchmark prime lending rate (bplr) by 0.25 percent, bringing it down to 15.25 percent. Earlier, the bank's benchmark rate stood at 15.50 percent. It should be noted that benchmark prime lending rate is the rate of interest that commercial banks levy on loans provided to their most credit worthy customers.
The bank issued a statement to this effect which said that the new benchmark prime lending rate will be applicable from 8 October, 2012.
It also stated that the bank's base rate will remain unchanged at 10.50 percent. Base rate is the lowest rate of interest below which banks are not allowed to lend.