This morning we reported about the slash in rates from Bank of Baroda and Allahabad Bank. Just a while ago we have received confirmation from Union Bank of India and Syndicate Bank about interest rate cuts to boost the economy.
Union Bank, has slashed its deposit rates by up to 1.35% across various maturities with effect from January 5. It is likely to revise its benchmark prime lending rate in the next couple of days.
With the revision, the Bank’s one year 90 days deposits will now fetch a rate of 8% against 8.75% earlier. Similarly, deposits having a maturity of 90-months and above 90-months will carry rates of 8% over 8.75% earlier.
Union Bank has also revised its interest rates on foreign currency non-resident (b) account deposits (FCNR) (B) and non-resident external term deposits (NRE) with immediate effect. FCNR (B) deposits in US dollar denomination will now fetch 3% over 3.77% in maturities of 1-2 years and 2.44% against 3.12% in tenure of 2-3 years.
Similarly, in terms of UK pound, the rate has been revised to 4.07% over 5.12% in maturities of 1-2 year while the rates on NRE deposits have been reduced to 3.75% against 4.52% on tenures between one year to two years.
Syndicate Bank, has slashed its benchmark prime lending rate (BPLR) by 75 bps, to 12.50% with effect from January 17, 2009.
The bank has also revised its interest rates for domestic term deposits of less than Rs one crore with effect from January 5, 2009. The proposed rate is 4.75% for 15 days-45 days, 6% for 46 days-90 days, 7.25% for 91 days-179 days, 8.50% for 180 days-one year, 8.75% for one year-499 days, 9.10% for 500 days-2 years, 8.75% for 2 years-5 years and 8.50% for five years and above.