State-run Corporation Bank on Tuesday cut its base rate or minimum lending rate by 0.25 percentage point to 10 per cent, a move which will lead to lower EMIs for its customers. The bank has revised the base rate for lending from 10.25 per cent to 10 per cent with effect from June 1, Corporation Bank said in a filing to the BSE.
With the reduction, all loans linked to base rates will now become cheaper by at least 0.25 per cent.
During the month, many banks including Punjab National Bank, Bank of Baroda, and IDBI Bank reduced base rate by 0.25 per cent to 10 per cent.
State Bank of India, the country's largest lender, had reduced its base rate by 0.15 per cent to 9.85 per cent effective April 10. Banks such as SBI, ICICI Bank, HDFC Bank and Axis Bank had cut lending rates by up to 0.25 per cent after Reserve Bank of India Governor Raghuram Rajan's tough talk with bankers on April 7.
The RBI had blamed banks for not passing the benefits of two repo rate cuts to borrowers and termed as nonsense the lenders' claims that cost of funds is high. The banks' marginal cost of funding (has) fallen, the notion that it hasn't fallen, is non-sense. It has fallen, Rajan had said.