Syndicate Bank cuts base rate by 0.25%

Move is on expected lines after RBI reduced key policy rate by 50 bps

Syndicate Bank reduced its lending rates after taking a cue from the large banks. It slashed its base rate by 25 basis points (bps) to 10.5% from 10.75%. In addition, the Benchmark Prime Lending Rate has also been slashed by 25 bps to 14.75% from 15%. The rates will be applicable from May 1, 2012. The revised interest rates will be applicable on domestic term deposits upto Rs 15 lakh under select maturity buckets w.e.f. April 23, 2012.

The base rate is the benchmark rate to which all loans are linked. As a result, consumer loans like home and auto loans, as well as loan rate for working capital and project loans availed by the corporate sector would become cheaper.

The move comes after the Reserve Bank of India (RBI) reduced the key policy rate or the repo rate by 50 bps in the annual monetary policy on Tuesday, signalling the beginning of a softer interest rate regime.

Syndicate Bank's move comes close on the heels of the decision of Punjab National Bank and ICICI Bank to reduce their base rate by 25 each to 10.5% and 9.75% respectively.

The move is on expected lines after the Reserve Bank of India (RBI) reduced the key policy rate or the repo rate by 50 bps in the annual monetary policy on Tuesday, signalling the beginning of a softer interest rate regime.

Syndicate Bank's stock was trading 0.09% up at Rs 110 on Bombay Stock Exchange at 1130 hours.