Public sector Indian Bank today said it will cut its lending rate by 0.30% to 10.20% with effect from February 9, 2013.
The bank has decided to reduce its base rate by 0.30% from the existing 10.50% to 10.20%, with effect from February 9, 2013, a Indian Bank said in a statement.
It has also decided to cut its benchmark prime lending rate by 0.25%.
"The Benchmark Prime Lending Rate of Indian Bank is reduced by 0.25% from the existing 14.75% to 14.50% per annum with effect from February 9, 2013," it added.
Last week, Indian Bank Chairman and Managing Director T M Bhasin had said: "Rs 130 crore amount of funds is what has been released (by Reserve Bank to the bank).
"It will generate an additional income of 33% since RBI decided to slash key interest by 0.25% for banks and release Rs 18,000 crore additional liquidity into the system".
"We have decided to pass on the advantage (to our customers) and we have decided to reduce the base rate to 10.20% from February 9, by 30 basis points (0.30%) from the present 10.50%," he had said.
