Share price of Allahabad Bank fell 3.6 percent intraday on September 19 after the company decided to launch retail loans linked with external benchmark rates.
The bank in its press release said that it has decided to launch Retail loans and loans to micro & small enterprise linked with external benchmark rates published by Financial Benchmarks India Pvt Ltd (FBIL).
Presently, the bank has identified RBI's repo rate and 3 month MIBOR as the benchmark rates.
Further, all the saving bank deposits of Rs 40 lakh and above, long tenure fixed deposit, bulk deposits and flexi fix deposits will be linked with external benchmark rate i.e. RBI's repo rate.
All the aforesaid products of the bank will be available for general public with effect from October 1, 2019.
At 1112 hrs, Allahabad Bank was quoting at Rs 30.75, down Rs 0.95, or 3 percent on the BSE.
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