Public sector Indian Bank has reduced the base lending rate by 0.20 per cent to 9.45 per cent.
The new base rate will come to effect from next week.
"Bank has reduced the base rate from 9.65 per cent to 9.45 per cent which will be effective from May 7, 2017," it said in a regulatory filing.
Base rate is the minimum lending rate below which banks cannot give money as loan.
Earlier in April, country's largest lender State Bank of India (SBI) had cut the base rate by 0.15 per cent to 9.10 per cent.
Stock of Indian Bank closed 3.52 per cent higher at Rs 347.40 on BSE.
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