New Delhi: State-owned Andhra Bank on Tuesday reduced its base rate by 0.25% to 10.25%, it said in a filing on the BSE, making home, auto and corporate loans cheaper for borrowers.
The bank also revised its benchmark prime lending rate (BPLR) by a similar amount to 14.5%. The new rates will be effective from 1 March, it said.
Several lenders, including State Bank of India (SBI), Punjab National Bank, Bank of India, Bank of Baroda and IDBI Bank have cut lending rates following easing of monetary policy by the Reserve Bank of India (RBI).
In its third-quarter policy review on 29 January, RBI lowered its key short-term lending rate by 0.25% and also injected Rs.18,000 crore liquidity through a reduction in the cash reserve ratio. The repo rate, at which RBI lends to banks, was eased after a gap of nine months as the central bank fought stubbornly high inflation through tight money policy, leading to a high interest rate regime.