Mumbai: State-run Bank of Baroda (BoB) on Friday cut its lending and deposit rates responding to monetary easing by the Reserve Bank of India (RBI) earlier this week. BoB cut its base rate, or minimum lending rate, by 25 basis points (bps) to 10.25% and deposit rate by 15-20 bps in certain shorter maturities.
One bps is one hundredth of a percentage point. The reduction will be effective 9 February, the bank said in a communication to stock exchanges.
On Tuesday, RBI cut its repo rate, at which it lends short-term funds to banks, to 7.75% and the cash reserve ratio (CRR), or the portion of deposits banks need to park with the apex bank, to 4% to stimulate growth in the economy.