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.
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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.