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Axis Bank cuts base rate to by 10 bps to 9.85%

In April, the bank had cut base rate by 20 basis points from 10.15% to 9.95%

BS Reporter  |  Mumbai 

Axis Bank, the country’s third largest private sector lender, has cut its base rate by 10 basis points (bps) to 9.85 per cent. The new rates will be effective from June 30. Base rate is the benchmark rate to which all rates are linked.

In April, had cut the base rate by 20 bps from 10.15 per cent to 9.95 per cent. Prior to this, the lender had reduced its base rate by another 10 bps last October.

ALSO READ: ICICI Bank cuts base rate by 5 bps to 9.70%

This month several other lenders including State Bank of India, ICICI Bank, HDFC Bank, Allahabad Bank, Federal Bank, Central Bank and Punjab & Sind Bank, among others, have reduced base rates.

This move comes after the Reserve Bank of India (RBI) cut the key policy rate or the by 25 basis point earlier this month. Since January, has cut the by a total of 75 basis points.

The regulator had said they expected full transmission of the rate cuts by to end customers. However, most have reduced base rate by 25-30 bps in response to RBI's rate cut of 75 bps.

ALSO READ: State Bank of Bikaner & Jaipur cuts base rate by 15 bps to 9.95%

First Published: Sat, June 27 2015. 00:21 IST