IDBI Bank cuts lending, deposit rates by 25 bps

IDBI Bank becomes the first bank to cut lending and deposit rates by 25 basis points each after Reserve Bank of India slashed repo rate and Cash Reserve Ratio by 25 basis points  

IDBI Bank’s loans, linked to Base Rate, will become cheaper with effect from February 1, 2013. The new base rate will be 10.25 per cent. Benchmark Prime Lending Rate (BPLR)  

This is pro-active step, keeping in view the policy measures announced by the RBI in its third quarter review of Monetary Policy, IDBI Bank said in a statement.

The rate revision is expected to positively impact loan growth in retail consumer segment and revitalise fixed capital formation through higher corporate sector lending.

Mumbai-based bank also reduced the Retail Term Deposit Rates in select buckets by 25 bps from February 1, it added.