State-run Central bank of India will reduce interest rates on auto, personal and gold loans by up to 200 basis points effective Saturday, a report on CNBC-TV18 said.
The bank at present charges interest rates in the range of 14.5-15.5 percent on personal loans, 11.50-12.50 percent on auto loans and 12.50-13.50 percent on gold loans.
The move is expected to boost growth in the bank’s retail business.
Recently, State Bank of India, the country’s largest lender, had cut its rates by up to 50 basis points on new home and auto loans.
According to a PTI report on 25 August, Central Bank of India is expected to cut rates by 25 to 50 basis points on home loans between Rs 30-35 lakh.
Earlier this week, state-run Union Bank of India reduced interest rates on auto loans by 1.55-2.55 percent.
Public sector banks are reducing lending rates on consumer loans in response to a call by Finance Minister Chidambaram to boost the demand in a sagging economy.
Consumers can look to cash in, if private sector lenders kickstart a rate cut war.