BOI, BOB cut lending rates

after India's largest lender, State Bank of India (SBI) slashed its interest rates; two more public-sector banks-- Bank of India and Bank of Baroda today reduced their lending, deposit rates from January 1.

Both banks today reduced their prime lending rates by 0.75 percent each to 12.5 percent.

The reduction in PLR will provide relief to both the existing and new customers of these banks including education, auto and home loan borrowers, bank officials told reporters here.

The banks have also reduced their deposit rates in the range of 0.5-1 percent across various maturities.

Other state-owned lenders, which have cut their interest rates in the recent period include Union Bank of India and Canara Bank.

In the private sector, the country's largest housing loan financer, Housing Development Finance Corporation and leading private sector lender, Bank of Rahasthan had cut their lending rates last week.

BoR today announced a cut in its deposit rates except in the 91-120 days maturity.For 91-120 days maturity deposits, customers will now get 1.25 percent more interest effective from December 22, the bank said.

State Bank of India had announced a 0.75 percent cut in its prime lending rate and a 0.25-1 percent reduction in deposit rates last week.

With this, State Bank's PLR now stands reduced at 12.25 percent.