New Delhi: State-owned Bank of India has cut the base or the minimum lending rate by 0.05% to 9.65% with effect from 30 September.

“The Bank has revised its base rate from 9.70% (existing) to 9.65%, with effect from 30 September 2016," it said in a regulatory filing.

The base rate means all those elements of the lending rate that are common across all categories of borrowers. And all categories of loans are required to be priced only with reference to the base rate. As the base rate is the minimum rate for all loans, banks are not permitted to resort to any lending below the base rate.

Bank of India stock closed 3% up at Rs120 per share on BSE.

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