Canara, BoB and BoI cut base rate

Following the Reserve Bank of India (RBI)’s decision to reduce the repo rate and cash reserve ratio, more public sector lenders have reduced their base rates.

State Bank of India, Union Bank of India and IDBI Bank reduced the rate earlier this week.

Canara Bank, Bank of Baroda and Bank of India also announced a reduction in base rates by 25 basis points to 10.25 per cent.

Chennai-based Indian Overseas Bank had recently announced to give home loans up to Rs 75 lakh at its base rate of 10.5 per cent. Bank of Baroda announced reduction in deposit rates in shorter maturities by 15-20 bps. Bank of India however hasn’t changed deposit rates for now.

Country’s largest lender State Bank of India had announced five basis-point cut in its base rate, bringing it down 10.7 at par with HDFC Bank. While announcing third quarterly review of monetary policy on Tuesday, RBI had cut the repo and cash reserve ratio by 25 bps, bringing those down to 7.75 per cent and four per cent, respectively.

RBI had cut the repo for the first time after April 2012.