In an attempt to provide low EMIs for its borrowers, the Public Sector lender Allahabad Bank reduced its lending rates by 45 basis points. In a regulatory filing, the bank declared that their Asset Liability Management Committee (ALCO) has decided to reduce the base rate and the BPLR (Benchmark Prime Lending Rate) by 45 basis points each.
The bank reduced the base rate to 9.15 percent from 9.60 percent. They also cut the BPLR to 13.40 percent from 13.85 percent. These changes will be effective from 2nd April 2018.
State Bank of India had reduced its base rate and BPLR by 30 bps each in January 2018. That move proved to be fruitful for nearly 80 lakh customers because their loan rates were linked to base rate and BPLR. However, experts predict that lending rate changes by Allahabad Bank may not be beneficial for new borrowers, as their loan rates are based on MCLR (Marginal Cost Lending Rate).