After Raghuram Rajan's nudge, HDFC Bank, SBI cut lending rate to 9.85%

Country's largest lender State Bank of India reduced its base rate by 15 bps on Tuesday. The new base rate now stands at 9.85 per cent and is effective from April 10. Base rate is the rate below which a bank cannot lend.

Private sector lender HDFC Bank too cut its base rate by 15 bps to 9.85 per cent.

The move comes on a day the Reserve Bank of India (RBI) kept its key rates unchanged. But governor Raghuram Rajan slammed banks for not lowering cost of funds despite two consecutive rate cuts 25 bps each in January and March this year.