Axis Bank cuts lending rate by 50 bps

Axis Bank, the country's third-largest private sector lender, has reduced its benchmark prime leading rate (PLR) by 50 basis points effective from Friday.

The bank's PLR now stands at 14.75 per cent, a press release issued here said. 

The rate cut came a day after Reserve Bank Governor D Subbarao said banks have scope to further lower their lending rates.      

PLR is the benchmark rate based on which banks decide their loan rates in various portfolios. With surplus liquidity in the system, banks have witnessed a steady decline in their cost of funds over the past few months.