Kolkata, Oct 3 (IANS): Following lending rate cuts from major banks across the country, state-run Union Bank of India (UBI), Indian Bank and Syndicate Bank and private Karur Vysya Bank on Saturday too cut their lending rates.
While UBI revised the rate by 35 basis points (bps) from 9.65 percent, Indian Bank cut it from the existing 9.95 percent to 9.65 percent. Syndicate Bank cut the base rate from 10 percent to 9.70 percent, while also reducing the Benchmark Prime Lending Rate from 14.25 percent to 13.95 percent.
Karur Vysya Bank has also announced a base rate cut by 0.35 percent to 10.40 percent.
United Bank of India will also be reducing its base rate or the minimum lending rate to 9.65 percent from 9.90 percent effective October 12.
Besides, another public sector undertaking - Central Bank of India - also reduced the minimum lending rate by 0.25 percent to 9.70 percent effective October 8 onwards.
Previously, Oriental Bank of Commerce had also reduced the interest rate on fixed deposit by 20 basis points to 9.7 percent. Hyderabad-based Andhra Bank had cut its base rate by 25 basis points to 9.75 percent followed by the country's largest mortgage lender State Bank of India lowering its base rate by 40 basis points to 9.3 percent.
Bank of Baroda, Punjab National Bank, ICICI Bank, Axis Bank and UCO Bank have also joined the league of banks lowering the minimum interest rate on loans.
New Delhi-based Punjab National Bank took a call to reduce the base rate by 40 basis points taking the figure to 9.6 percent while another public sector undertaking UCO Bank reduced its base rate by 25 basis points to 9.7 percent.
Effective from October 5, Bank of Baroda will also reduce the base rate by 25 basis points from the prevalent 9.90 percent to 9.65 percent while ICICI Bank will be pulling it down to 9.35 percent - a reduction by 35 percent.
In the private sector, Axis Bank pioneered the recent rate cut, revising its base rate by 35 basis points from 9.85 percent to 9.50 percent.
The Reserve Bank of India on Tuesday reduced the repo rate or the interest charged on short-term borrowings by 50 basis points to 6.75 percent, with the aim to boost the sluggish loans' scenario pan-India.
It triggered banks from the country's public and private sectors announcing interest rate cuts by up to 0.40 percent.