Public sector lender UCO Bank has notified that it would cut prime lending rate by 50 basis points by next week.

The bank has stated in a release that it has decided to cut PLR by half a per cent and ALCO (Assets and Liability Committee) of the bank would meet on November 10 to review the interest rate scenario.

Recently, Indian government has announced capital restructuring of Kolkata-based UCO Bank by converting Rs 250 crore equity into preference shares, which would enable the PSU lender to raise funds from the market.

UCO Bank is targeting a net interest margin of 2 percent for the year to March 2009. The bank has equity capital of Rs 799.36 crore, the highest among all the listed public sector banks.

Kolakata-based UCO Bank has registered a 36 percent increase at Rs 150.09 crore in the net profit in the second quarter this year as compared to Rs 110.53 crore in the same period during the corresponding period last fiscal.