Following the repo rate cut by the Reserve Bank, public sector lender Bank of India this evening announced reduction in its minimum lending or base rate by 25 basis points to 9.70 per cent from 9.95 per cent, effective October 5.
Public sector Andhra Bank was first off the block to cut interest rate by 0.25 per cent.
While country's largest lender State Bank of India followed suit and slashed the minimum lending rate by 0.4 per cent to 9.3 per cent.
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The RBI today cut the benchmark repurchase (repo) rate from 7.25 per cent to 6.75 per cent, lowest in four-and-half-years.
The reverse repo rate, at which it accepts banks' excess liquidity, will be 5.75 per cent, while the cash reserve ratio is kept unchanged at 4 per cent.
Soon after the RBI policy announcement, Finance Minister Arun Jaitley had expressed hope that banks will transmit the benefit to borrowers so as to boost investments and the economy.
