UCO Bank may cut lending rates by 100 basis points

Kolkata, Dec 16 (IANS) State-owned UCO Bank may cut its benchmark prime lending rate (BPLR) by 100 basis points, a top company official said here Tuesday.

'We have our board meeting at the end of this month, we will decide during that meeting about lending and deposit rates. The revised rates will be effective from Jan 1,' S.K. Goel, chairman and managing director of the bank, told reporters on the sidelines of a conference organised by the Merchants' Chamber of Commerce.

The bank will also revise downwards 'substantially' its deposit rates, he said.

At present, UCO Bank's BPLR is at 13.75 percent, while its deposit rate is at 10.5 percent.

'Before reducing deposit rates, it is not possible to cut lending rates,' Goel added.