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Central
Bank reduces lending rates
Our Banking Bureau
23 March 2002
 Mumbai:
Central Bank of
India (CBI) has decided to reduce its medium-term lending rates (MTLR)
for term loans by 50 basis points. It has also cut its deposit
rates by 25 basis points.
 With these cuts, CBI
becomes the first bank to reduce its lending and deposit rates
after the 50-basis points cut in the small savings rates in the
Budget 2002-03. The medium-term lending rate of the bank has been
brought down to 12 per cent from 12.5 per cent, with effect from 1
April 2002. The prime-lending rate of the bank, however, remains
unchanged at 12 per cent.
The bank has also trimmed its deposit rates by 25 basis points
across the board. For deposits of less than Rs 15 lakh for a tenor
of 15 to 45 days, the rate is now 4.75 per cent; for a period of
46 to 179 days, the rate will be 5.5 per cent; for a period of 180
days to less than one year, the rate is 6.5 per cent; the rate is
7.25 per cent for deposits of one year to less than two years; 7.5
per cent for two years to less than three years; 8 per cent for
three years and above.
A bank press release said the revised deposit rates will apply
only  to
fresh deposits and renewals of maturing deposits.
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