Updated on Saturday, July 04, 2009, 19:28 IST

Mumbai, July 04: State Bank of Bikaner and Jaipur (SBBJ), the largest associate bank of State Bank of India today slashed its benchmark lending rate by 0.5 per cent to 12.25 per cent.

The Benchmark Prime Lending Rate (BPLR) of the bank has been revised from 12.75 per cent to 12.25 per cent with effect from July 6, SBBJ informed the Bombay Stock Exchange.

The revised BPLR would be applicable to all existing and new accounts where the floating interest rate is linked to BPLR.

Last month, the country's largest lender SBI reduced slashed its benchmark lending rate by half a percentage point to 11.75 per cent effective June 29.

SBI last reduced the BPLR by 75 basis points with effect from January 1, 2009.

Following the decision of SBI many other public sector lender including Allahabad Bank too reduced BPLR by 50 basis points.

Union Bank of India and IDBI Bank also softened its benchmark prime lending rate by 0.25 per cent effective July 1.

State Bank of Mysore, an associate of SBI slashed its lending rate by 50 basis points to 12.25 per cent while deposit rates were cut by 25 basis points.

Bureau Report