The revision will also give fillip to Prime Minister Narendra Modi's 'Make in India' campaign, a bank release said.
The government's ambitious campaign, launched in September, is aimed at making the country a global manufacturing hub.
"The revised interest rate for borrowers from investment-grade medium enterprises is in the range of 12.25-13.75 per cent," the bank said.
The new rates are effective from November 3.
The city-based bank had reported a 78 per cent spike in its net at Rs 371 crore in the September quarter. The sharp increase in the profit was on account of lower provisioning and a Rs 140 crore income tax write-back.
Chairman and managing director Arun Tiwari has attributed the good set of numbers to loan growth in retail, agriculture and MSME sectors.