Mumbai: The Royal Bank of Scotland N.V. on Tuesday cut its base rate or minimum lending rate by 75 basis points (bps) to 9% becoming the first foreign bank in the country to lower interest rate after the Reserve Bank of India (RBI) cut its key lending rate and cash reserve ratio (CRR) earlier in the day to support growth in the economy.
One bps is one hundredth of a percentage point.
Earlier, IDBI Bank Ltd announced a 0.25 percentage point cut in lending and deposit rates, responding to the apex bank’s policy action.
The RBI cut its repo rate, at which it lends short-term funds to banks, to 7.75% and CRR, the portion of deposits banks have to park with the apex bank, to 4%.
