Zee Media Bureau
New Delhi: Allahabad Bank on Tuesday cut its lending rate by 0.30 percent to 14.20 percent from 14.50 percent.
The bank has also decided to cut its base rate by 30 basis point from existing 10.25 percent to 9.95 percent, effective from June 08.
The move comes just a few hours after the RBI decided to cut its policy rate by 0.25 percent, paving way for cheaper home and auto loans as also lower cost of funds for corporate borrowers.
Rajan, who had focused on quelling inflation since taking office in September 2013, lowered the benchmark repo rate to 7.25 percent from 7.50 percent.
As a result the reverse repo rate, the rate at which the central bank drains excess liquidity from the banking system, also moved down by 25 basis points to 6.25 percent.
The RBI, however, has decided to keep the cash reserve ratio (CRR), the portion of deposits which the banks are required to have in cash with the central bank, unchanged at 4.0 percent.
