Interest rates down! Big benefit is here if you are customer of this bank
It's a big relief to consumers!
It's a big relief to consumers as state-owned Allahabad Bank on Saturday slashed the interest rate on external benchmark-linked products by up to 40 basis points. The three-month Mumbai Interbank Offered Rate was reduced to 5.75 per cent from 6.15 per cent. According to the minutes of the last MPC, members said that monetary transmission across various money market segments and the private corporate bond market has been sizable.
"...the Asset Liability Management Committee (ALCO) of the Bank has decided to revise interest rates for the products linked to External Benchmark with effect from 1st March 2020," the bank said in a regulatory filing.
As against the cumulative reduction in the policy repo rate by 135 bps since February 2019, transmission to various money and corporate debt market segments up to January 31, 2020 ranged from 146 bps (overnight call money market) to 190 bps (three-month CPs of non-banking finance companies), RBI had said.
The Reserve Bank of India had kept the policy repo rate unchanged at 5.15 per cent. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.
Earlier, on 11th Feb, it was reported that state-run lender Allahabad Bank declared a wider net loss during the third quarter ended December 31, 2019, due to higher provisioning for non-performing assets (NPAs). According to the bank, its net loss widened to Rs 1,986.27 crore from Rs 732.81 crore reported for the same period of the previous financial year.
The bank's gross NPA (GNPA) stood at 18.93 per cent during the quarter under review as against 17.81 per cent as on December 31, 2018.
"Net NPA significantly reduced to 5.13 per cent as on December 31, 2019 from 7.70 per cent on December 31, 2018," the bank said in a statement. "Provision Coverage Ratio (PCR) significantly improved to 82.42 per cent at the end of December 2019 as against 69.64 per cent at the end of December 2018," it added.
The lender's provisions other than tax and contingencies increased to Rs 3,092.54 crore from Rs 1,495.37 crore made during the same period of the previous financial year. Similarly, the provisioning for NPAs rose to Rs 3,002.98 crore from Rs 1,900 crore made during the corresponding quarter of the last fiscal.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
11:55 AM IST