Kotak Mahindra Bank, YES Bank cut base rate by 25 bps

Kotak Mahindra Bank and YES Bank on on Thursday announced a 25 bps cut in their lending rates to 9.5 per cent and 10.25 per cent respectively. The reduced rates will come into effect from October 5.

Kotak Mahindra Bank is the fourth largest while YES Bank is the fifth largest private sector bank in the country. Both the banks have joined the bandwagon by cutting their base rates after Reserve Bank of India (RBI) Governor Raghuram Rajan announced a 50 bps cut in repo rate in fourth bi-monthly monetary policy review held on September 29.

The State Bank of India (SBI), the largest public sector bank, was amongst the first to announce a cut in its lending rate by 40 bps to 9.3 per cent to be followed by IDBI Bank, Punjab National Bank, Axis Bank amongst others.