New Delhi: Indian mid-sized state-run lender Dena Bank has slashed its lending rates on education loans by 200 basis points and by 100 to 150 basis points on car loans, it said.
Interest rates on education loans have been lowered to 12% from 14% earlier, while the interest rates on car loans have been lowered to around 11% to 12% from 12.5% to 13% earlier, it said in a statement Tuesday.
Moreover, the state-run bank has also cut rates on personal loans by 200 basis points to 14% from 16% earlier, it added.
Recently, the State Bank of India, the country's largest lender, and other public sector banks like Indian Overseas Bank, Union Bank of India, Punjab National Bank and Central Bank of India cut their lending rates for certain sectors, after the the Reserve Bank of India cut the SLR to 23% to encourage flow of credit to productive private sector projects.
SLR is the minimum amount of investments that banks need to make in secure instruments like government securities.
Meanwhile last month, Finance Minister P Chidambaram had asked state-run lenders to cut interest rates and keep instalments at affordable levels to encourage sale of consumer goods and provide a much-needed boost to the industrial sector.
Shares of Dena Bank Wednesday were trading at Rs 87.7 on the Bombay Stock Exchange (BSE) at 11:02 am, down 0.68% from the previous close.