Yes Bank to lower interest rate by 50 bps in a month

Private sector lender Yes Bank said it will cut its benchmark lending rate by 50 basis points beginning next month, coinciding with Finance Minister Pranab Mukherjee's initiative to make banks commit on lowering the cost of funds.

"We see some reduction in the prime lending rate (PLR). We see 0.5 per cent reduction effective July 1," Yes Bank Managing Director Rana Kapoor told PTI.

"Basically, we think July being trigger for the rate cut," he said.

Earlier in the day addressing chief executives of the public sector banks the Finance Minister expressed concern at non-availability of credit at affordable prices from banks.

"As a financial intermediary, the banks have to stand by to provide credit at reasonable rates. This is an area of concern in many quarters both within the government and outside," he said.

He said reduction in key rates by RBI is not getting adequately reflected in the reduction of prime lending rates by banks.

"I would urge the banks to address these concerns expeditiously and in adequate measure. This will help restore the environment for rapid growth and ensure that the growth process benefits all our people," Mukherjee said.