Loans to get cheaper as RBI cuts key interest rates

Responding to the central bank's move, Yes Bank also reduced its prime lending rate by 0.50 percent.

"After our asset-liability committee meeting today, we have decided to reduce our PLR by 0.50 percent," said Rana Kapoor, managing director and CEO, Yes Bank.

The bank's PLR accordingly stands reduced to 16.5 percent from the earlier 17 percent.

Punjab National Bank's (PNB) chairman and managing director K.C. Chakrabarty said his bank has reduced lending rates. "We have reduced the BPLR as a proactive measure. We are committed to doing so on a continuous basis as and when we feel it is necessary and have the capability to do it," he said.

PNB has slashed its BPLR by 100 basis points to 12.5 percent effective 1 December. It will now stand reduced by another 50 basis points at 12 percent.

PNB has also cut its peak deposit rate to 9.5 percent from 10.5 percent for 1-2 years' fixed deposits.