Calcutta, Dec. 31: Allahabad Bank is looking to borrow Rs 200 crore to fund its expansion plans, which include setting up a couple of offshore banking units in India and representative offices abroad.

“The bank does not need the funds immediately, but I feel interest rates have bottomed out and we want to borrow the money before rates start rising,” said Allahabad Bank’s chairman . . Singh, even as he announced as 50 basis point cut in lending rates.

The bank today cut its benchmark prime lending rate (PLR) by 50 basis to 11 per cent. This will benefit a large number of borrowers, ranging from small enterprises to home loan-takers.

For instance, the cut in the bank’s benchmark PLR pares the interest rate on home loans by 50 basis points. Interest rates on Allahabad Bank’s home loans now range between 7.25 per cent and 8.25 per cent, depending on term.

To woo foreign currency deposits, the bank today announced an increase in interest rate on foreign currency — FCNR (B) — deposits by five to 40 basis points, depending on maturity. However, interest rates on domestic deposits of more than two years were cut by 25 basis points.

Singh said the bank was planning to open an offshore banking unit in the special economic zone (SEZ) in Noida. “We haven’t decided the location of the other one — it could be in Calcutta.”

To increase its presence overseas, the bank is looking to set up a branch or a representative office in China and West Asia — Dubai or Abu Dhabi to be specific.