Public sector lender SBI's associate bank, State Bank of Mysore today slashed its lending rate by 50 basis points to 12.25 per cent.
The reduction in rates comes soon after the two public sector banks SBI and IDBI slashed their Benchmark Prime Lending Rate (BPLR).
State Bank of Mysore along with revising lending rates down also revised its deposit rates by 25 basis points, the bank said in a filing to Bombay Stock Exchange.
Yesterday, IDBI bank slashed its lending rate by 25 basis points to 12.75 per cent, a day after the leading public sector bank State Bank of India slashed lending rate by 50 basis points to 11.75 per cent.
The new lending and deposit rates from State Bank of Mysore will be applicable from June 29, the bank said in the filing.
The decision of these banks would prompt other lenders to follow suit and may lead to greater demand for loans and spur consumption.
The rate cuts by the banks comes within a fortnight of the Finance Finance Minister Pranab Mukherjee asking state-owned banks to soften rates.