Axis Bank on Wednesday cut its base rate by 0.35 per cent to 9.50 per cent on Wednesday with effect from October 5. The private sector lender is the third bank to cut the rate after State Bank of India and Andhra Bank, who announced their lending rate cut on Tuesday, following RBI rate cut move.

Reserve Bank of India Governor Raghuram Rajan cut its key rates by 0.50 per cent. Bankers were almost unanimous in saying that borrowers should expect cut in lending rates following the RBI move.

“Axis Bank has revised its base rate from 9.85 per cent to 9.50 per cent per annum with effect from October 5,” the bank said in a statement.

This is third rate cut by the bank this fiscal, following a 0.20 per cent cut in April and a 0.10 per cent cut in June.

State Bank of India on Tuesday slashed its benchmark lending rate by 0.4 per cent to 9.3 per cent after the Reserve Bank of India cut repo rate by 50 basis points.

Andhra Bank was the first bank to cut its rates immediately by 0.25 per cent after RBI announced the monetary policy review.

With agency inputs