Mumbai: State-owned Central Bank of India on Saturday announced a reduction of 0.25% in its base rate or the minimum lending rate to 10.25%.
“We have revised downwards our base rate by 25 basis points (0.25%) from 10.50% to 10.25% effective 9 February,” the bank said in a statement.
The city-based bank has also reduced its deposit rates in select maturities effective 9 February. But it did not offer details.
While IDBI Bank was the first to reduce rates on 29 January, following the Reserve Bank of India (RBI) decision to reduce its short-term lending rates and cash reserve requirements of banks by 0.25%, market leader State Bank of India (SBI) chose to lower only marginally (0.05%) to 9.70% a day later. Other lenders like Punjab National Bank (PNB), Bank of Baroda (BoB) and Union Bank effected similar cuts during the week, while private lenders like HDFC Bank and Federal Bank slashed interest on select products by as much as 0.50%.