ICICI Bank, Kotak Mahindra and 6 others cut lending rate
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ICICI Bank, Kotak Mahindra and 6 others cut lending rate

With the repo rate reduction, all loans linked to the base rate would be cheaper by at least 0.35 per cent.

 PTI   
  • October 5, 2015  
  • |  
  • UPDATED   11:46 IST
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Joining the rate cut bandwagon, as many as eight lenders including ICICI Bank, Kotak Mahindra Bank, Yes Bank and SBBJ reduced their benchmark lending rate by up to 0.35 per cent, a move which would lower EMIs for home and auto loan borrower. Countrys largest private sector bank ICICI slashed its base rate by 0.35 percentage point to 9.35 per cent. The revised rate will be 9.35 per cent as against existing 9.70 per cent effective October 5, it said in a statement.

With the reduction, all loans linked to the base rate would be cheaper by at least 0.35 per cent. Another private sector lender Kotak Mahindra Bank reduced its base rate by 0.25 per cent to 9.50 per cent. "The base rate cut has been possible on revisions in the deposit offerings in recent past and the bank will also be cutting its deposit rates marginally," said Kotak Mahindra Bank president and group Chief Financial Officer Jaimin Bhat. Other two private sector lender, Yes Bank and Karnataka Bank, have cut base rate by 0.25 per cent to 10.25 per cent from 10.50 per cent effective October 5.

"The reduction in base rate will make loan cheaper. The revised base rate will be applicable to new as well as existing loans," Karnataka Bank said in a statement. Besides, four public sector lender Allahabad Bank, Dena Bank, Bank of Maharashtra and State Bank of Bikaner and Jaipur (SSBJ) reduced their base rate by up to 0.30 per cent. After reduction, base rate of Dena Bank and Bank of Maharashtra will be 9.70 per cent from 10 per cent while the new rate for SBBJ and Allahabad Bank will be 9.70 per cent, effective October 5. Meanwhile, Punjab National Bank also reduced interest rate on fixed deposit rate on various maturities by 0.25 per cent. Yesterday around six banks including PNB, BOB, IDBI Bank, Axis Bank slashed base rate by up to 0.4 per cent. 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 on Tuesday.