Allahabad Bank cuts Deposit as well as Lending rates

Allahabad Bank, one of the premier nationalized banks of the country, has decided to cut interest rates on Lending as well as in some buckets of Term Deposits with effect from 10th February, 2008. The decision to reduce the rates has been taken keeping in view the reduction in the cost of incremental funds, falling yield in G. Sec and overall market scenario.

The Lending rates on retail credit has been reduced largely by 50 basis points to 100 basis points in Housing Loan, Loans for Consumer durables, Car Loans and Education Loans. This reduction will reduce the interest burden of the Students, Home Loan borrowers as well as those who take loans for buying consumer durables. The reduction is applicable for new loans in both the categories i.e., floating and fixed rates. The Bank trusts the reduction will make the Bank's Loan Schemes more attractive and comfortable to borrowers. In Housing Loan, the interest rates have been reduced by 50 to 75 basis points across the board in all tenure buckets. Similarly, interest rates on Car Loan and Consumer durables Loan has been cut by 100 basis points straightway in all categories. Education Loan too has been made softer with a cut in the interest rates by 25 to 100 basis points.

Interest rates on Deposits have been reduced by 25 basis points in all time buckets having tenure of 2 years and above up to 10 years. However, Deposits in shorter tenure from 61 days to 180 days, the interest rates have been revised upward by 75 to 100 basis points making deposits in these buckets more attractive.

Date: 5th February, 2008

Press Cornerer