State-run, Bank of India (BoI) on Tuesday March 17th cut its benchmark prime lending rate (BPLR) by 50 basis points to 12% from 12.5%.

An official from BoI said that the rate cut will be valid for all the portfolios linked to the BPLR. The new rate is effective from April 1st, 2009.

For the third quarter ended on December 2008, BoI clocked a sharp rise of 70.38% in its net profit to Rs 8,721.70 million from Rs 5,118.90 million, a year ago.

Similarly the bank also posted a rise in the interest earned and the total income by 37.83% to Rs 43,431.70 million and 45.57% to Rs 53,937.40 million respectively.

Recently Bank of Baroda (BoB) and Union Bank of India (UBI) have also slashed their BPLR by 50 basis points to 12%.

Following the latest cut in key policy rates by the RBI, many banks have declared a cut in their lending rates and thereby passed on the benefit to their borrowers.