State-run Syndicate Bank and United Bank of India today cut their benchmark lending rates by up to 0.30 per cent, making home and auto loans cheaper for new as well as existing customers.
Private lender Karur Vysya Bank also announced a cut in its base rate by 0.35 per cent to 10.40 per cent. The new rate is effective from October 5, the Bank said in a statement.
State-run United Bank of India in a separate statement said that it has decided to reduce base rate or the minimum lending rate to 9.65 per cent from 9.90 per cent with effect from October 12.
Syndicate Bank also reduced its base rate by 0.30 per cent to 9.70 per cent.
Central Bank of India too has reduced base rate by 0.25 per cent to 9.70 per cent effective from October 8.
Besides, United Bank of India also reduced interest rate on fixed deposit across various maturities between 0.25-0.50 per cent effective October 5.
For term deposit between 46-269 days, the interest rate has been lowered by 0.50 per cent while for 269 days-3 years the reduction is by 0.25 per cent.
Another public sector lender, Oriental Bank of Commerce (OBC) has also reduced interest rate on fixed deposit by 0.25 per cent across some maturities.
Interest rate on term deposit between 91 days to 10 years will be lower by 0.25 per cent effective October 5.
The rate cut has been triggered by Reserve Bank revising downward its benchmark short-term lending (repo) rate by 0.50 per cent in its fourth bimonthly monetary policy review.
Following this about 20 banks from public and private sectors have cut interest rates by up to 0.40 per cent. Market majors like SBI, ICICI Bank, PNB, BoB have cut rates.