New Delhi: Foreign lender Citibank Tuesday cut its benchmark lending rate by 25 basis points to 14.75%, a week after the RBI reduced short-term policy rates by quarter percentage point.
The new Prime Lending Rate (PLR) would be effective from 1 May Citibank said in a statement.
This reduction is in line with the prevailing monetary policy of the RBI, lower deposit rates and overall cost of funds, it said.
The bank last revised its PLR in November, when the rate was lowered from 15.5% to 15%.
Last week, the country’s largest private sector lender ,ICICI Bank, slashed the advance rate by 50 basis points to 16.25%. At the same time, the bank also cut deposit rates between 25 and 50 basis points across various maturities.
The Bank also reduced the floating reference rate by half a percentage point to 13.25%.
All the existing floating rate customers will benefit from the cut, the statement added.
Meanwhile, other banks, including State Bank of India and Punjab National Bank, also hinted at revision in both lending and deposit rates in the coming days.