Allahabad Bank cuts lending rate by 25 bps

Mumbai, India, March 27, 2008 - Allahabad Bank, one of the leading nationalized banks of the country, has decided to cut its Benchmark Prime Lending Rate (BPLR) by 25 basis points (0.25%) from the present rate of 13.25% to 13.00% with effect from 1st April, 2008. The reduction in BPLR has been announced having regard to present market scenario and the need to provide credit to productive sectors at affordable rate.

Due to the above change in the BPLR, all the existing interest rates linked to BPLR, applicable on all existing and future working capital and term loans, will stand reduced by 25 basis points with effect from 1.4.2008.

The Bank has already announced a cut in the interest rate of fresh Housing Loans by 25 basis points in both floating and fixed term loans with effect from 1.4.2008 for loans up to Rs.20 lacs on all maturities. With the present cut in BPLR, in actual terms, interest on Housing Loan up to Rs.20 lacs in floating term loan will stand reduced by 50 basis points for all fresh sanction w.e.f. 1.4.2008.