OBC puts on hold decision to cut minimum lending rate by 0.25%

State-owned Oriental Bank of Commerce today said it has put on hold its decision to cut base rate by 0.25% to 10% proposed to be effective from July 22.

"Oriental Bank of Commerce has now informed BSE that the implementation date for reduction in base rate has been put on hold," the bank said in a filing to the BSE.

Earlier on July 9, the bank had announced it will reduce base rate by 0.25% from 10.25% to 10% with effective from July 22, 2013.

The bank did not elicit any reason for putting on hold its decision to cut base rate.

Last week, public sector lender Union Bank of India had cut its minimum lending rate or base rate by 0.25% to 10%.

The move by the bank came immediately after meeting of state-run bankers with Finance Minister P Chidambaram where they were asked to cut minimum lending rates so as to thrust falling investment and propel growth.

"We have advised banks to take a look at the base rate. The base rate of SBI is 9.7%. The average of the base rates of other banks is 10.2 or 10.25. We have asked them to take a look at the base rate," Chidambaram had said after meeting state-run bank chiefs here.