Bank of India cuts base rate by 25 bps to 9.70 pct

By: | Published: September 29, 2015 9:49 PM

Following the repo rate cut by the Reserve Bank, public sector lender Bank of India this evening announced reduction in its minimum lending...

home loan, home loan pay, home loan repayBank of India this evening announced reduction in its minimum lending or base rate by 25 basis points to 9.70 per cent from 9.95 per cent.

Following the repo rate cut by the Reserve Bank, public sector lender Bank of India this evening announced reduction in its minimum lending or base rate by 25 basis points to 9.70 per cent from 9.95 per cent, effective October 5.

Public sector Andhra Bank was first off the block to cut interest rate by 0.25 per cent.

While country’s largest lender State Bank of India followed suit and slashed the minimum lending rate by 0.4 per cent to 9.3 per cent.

The RBI today cut the benchmark repurchase (repo) rate from 7.25 per cent to 6.75 per cent, lowest in four-and-half-years.

The reverse repo rate, at which it accepts banks’ excess liquidity, will be 5.75 per cent, while the cash reserve ratio is kept unchanged at 4 per cent.

Soon after the RBI policy announcement, Finance Minister Arun Jaitley had expressed hope that banks will transmit the benefit to borrowers so as to boost investments and the economy.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition