Union Bank, Corporation Bank cut lending rate

Banks slash benchmark lending rate by 0.15%, making loans cheaper

A day after country's largest lender SBI trimmed its fixed deposit rates, two more lenders -- Union Bank of India and Corporation Bank -- today slashed benchmark lending rate by 0.15%, making loans cheaper.

The bank has revised base rate or minimum lending rate by 15 basis points to 10.50% from 10.65, Union Bank of India said in a filing on the BSE.

Base rate is the benchmark rate below which a bank cannot lend.

Another state-owned lender Corporation Bank has also reduced the base rate by similar percentage points to 10.50%.

The revised rates of both the banks will be effective from May 1.

Following the Reserve Bank's decision to cut key interest rate by 0.5% to 8% in its annual credit policy last week, several banks including ICICI Bank, IDBI Bank and Punjab National Bank have reduced both lending and deposit rates.

Yesterday, State Bank of India (SBI) along with five more banks announced revision in their interest rates.

SBI trimmed interest rates on fixed deposits by up to 1% across various maturities. There was upward revision of 0.25% in case of fixed deposits of 180 days.