Maybank, Public Bank and RHB lower base lending rates

KUALA LUMPUR: Malayan Banking Bhd (Maybank), Public Bank Bhd and RHB Bank Bhd have separately announced they are lowering their base rate (BR) and base lending rate (BLR) per annum by 25 basis points (25bps), in line with the central bank’s reduction in the overnight policy rate (OPR) on Wednesday.

Maybank’s rate cut, effective today, will result in its BR being trimmed to 2.75% from 3%, while its BLR will be adjusted to 6.4% from 6.65%. Its deposit rates will also be lowered by 25bps.

Its Islamic banking segment’s BR will see a similar 25bps reduction to 2.75% from 3% previously, while the Islamic base financing rate will fall to 6.40% from 6.65%.

As for Public Bank, the BR and BLR cut, together with a corresponding adjustment of its fixed deposit rates, will take effect on Jan 28.

“Given the current challenging operating environment, Public Bank’s base rate reduction is timely to ease the burden of the borrowers and help stimulate the nation’s economic growth. Public Bank will continue to proactively manage its assets and liabilities to ensure interest rates are priced responsibly at all times for the benefit of its customers,” Public Bank said in a statement.

RHB’s rate adjustment, meanwhile, will take effect on Jan 29. “RHB, RHB Islamic Bank Bhd and RHB Investment Bank Bhd will reduce its BR from 3.75% to 3.50% per annum, and will also revise the BLR from 6.70% to 6.45% per annum,” it said in another statement.

On Wednesday, Bank Negara Malaysia announced the OPR would be reduced to 2.75% from 3% as a pre-emptive measure to secure the nation’s improving economic growth trajectory. The OPR cut, which is viewed as negative for banks, has weighed on most banking stocks since the announcement.

Maybank shares closed four sen or 0.47% lower at RM8.51 yesterday, while RHB slipped three sen or 0.51% to RM5.81. Public Bank, which lost 2.36% on Wednesday, saw a slight recovery of 12 sen or 0.63% to close at RM19.14.