 "Axis Bank cuts base rate by 35 bps to 9.50%")
Axis Bank, the country's third largest private sector lender, has reduced its base rate by 35 basis points to 9.50%.
Base rate is the benchmark lending rate to which all loans are linked.
This comes a day after Reserve Bank of India reduced the repo rate by 50 basis points. Repo rate is the rate at which banks borrow from the regulator.
In this calendar year, RBI has reduced the repo rate by 125 basis points, but the transmission by the banks hasn't been at the same pace. Before yesterday's cut by the RBI, banks on an average had reduced the base rate by only 30 bps when the repo rate had been slashed by 75 bps.
Yesterday, some other lenders like State Bank of India, Bank of India and Andhra Bank had also reduced their base rate. More banks are likely to follow suit.