A day after country’s largest lender State Bank of India trimmed its fixed deposit rates, two more lenders — Union Bank of India and Corporation Bank — on Tuesday slashed benchmark lending rate by 0.15%, making loans cheaper.
The bank has revised base rate or minimum lending rate by 15 basis points to 10.50% from 10.65%, Union Bank of India said in a filing on the BSE.
Base rate is the benchmark rate below which a bank cannot lend.
Another state-owned lender Corporation Bank has also reduced the base rate by similar percentage points to 10.50%.
The revised rates of both the banks will be effective from May 1.
Following the Reserve Bank’s decision to cut key interest rate by 0.50% to 8.0% in its annual credit policy last week, several banks including ICICI Bank, IDBI Bank and Punjab National Bank have reduced both lending and deposit rates.
Public sector lender Central Bank of India also announced to cut base rate by 0.25 percentage points. The revised base rate will be 10.50%. However, the bank has kept the benchmark prime lending rate unchanged at 15.0%.