Union Bank, Dena Bank cut lending rate

The new base rates will be effective from Saturday
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First Published: Fri, Feb 08 2013. 05 45 PM IST
Union Bank of India has cut its base rate by 0.25 percentage point, while Dena Bank has cut its base rate by 0.20 percentage point. Photo: HT
Union Bank of India has cut its base rate by 0.25 percentage point, while Dena Bank has cut its base rate by 0.20 percentage point. Photo: HT
Updated: Fri, Feb 08 2013. 07 16 PM IST
Mumbai: State-run Union Bank of India and Dena Bank on Friday cut their base rate, or minimum lending rate, joining a host of lenders that reduced borrowing costs after the Reserve Bank of India (RBI) lowered its key policy rate on 29 January in a bid to revive economic growth.
Union Bank of India cut its base rate by 0.25 percentage point to 10.25% with effect from Saturday, the bank said in a release. It kept deposit rates unchanged. Dena Bank cut its base rate by 0.20 percentage point to 10.25%, with effect from Saturday.
Following the RBI rate cut, State Bank of India, the nation’s largest, had cut its lending rate by 5 basis points (bps) to 9.7%.
One basis point is one-hundredth of a percentage point.
Other banks that cut lending rates include Punjab National Bank and HDFC Bank Ltd.
RBI cut its repo rate—at which it lends short-term funds to banks—to 7.75% and cash reserve ratio, the portion of deposits banks need to park with RBI, to 4%.
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First Published: Fri, Feb 08 2013. 05 45 PM IST
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