The public sector lender, Allahabad bank has cut its base rate and the Benchmark prime lending rate by 30 basis points which will be effective from February 18th, 2013.
After the reduction, the base rate would stand at 10.20 per cent from 10.50 per cent, while BPLR will be 14.45 per cent from 14.75 per cent, said in a press release by Allahabad Bank.
The bank has decided to offload non-performing assets (NPAs) worth Rs 540 crore. Mrs. Subhalakshmi Panse, Chairman and Managing Director of Allahabad bank said, "The deal is on the table and the process will be completed by next month".
Allahabad bank saw the bad loans rising in the second quarter which ended on September 30, 2012. The bank then had drawn up a strategy for better NPA management.