New Delhi/Mumbai: Joining the rate cut bandwagon, as many as eight lenders including ICICI Bank, Kotak Mahindra Bank, Yes Bank and SBBJ reduced their benchmark lending rate by up to 0.35 percent Wednesday, a move which would lower EMIs for home and auto loan borrower.
Country's largest private sector bank ICICI slashed its base rate by 0.35 percentage point to 9.35 percent.\
ALSO READ: ICICI Bank cuts lending rate by 0.35% to 9.35%
The revised rate will be 9.35 percent as against existing 9.70 percent effective October 5, it said in a statement.
With the reduction, all loans linked to the base rate would be cheaper by at least 0.35 percent.
Another private sector lender Kotak Mahindra Bank reduced its base rate by 0.25 percent to 9.50 percent.
ALSO READ: Yes Bank, Kotak Mahindra Bank, Allahabad Bank, SBBJ cut base rate by 0.25%
"The base rate cut has been possible on revisions in the deposit offerings in recent past and the bank will also be cutting its deposit rates marginally," said Kotak Mahindra Bank president and group Chief Financial Officer Jaimin Bhat.
Other two private sector lender, Yes Bank and Karnataka Bank, have cut base rate by 0.25 percent to 10.25 percent from 10.50 percent effective October 5.
"The reduction in base rate will make loan cheaper. The revised base rate will be applicable to new as well as existing loans," Karnataka Bank said in a statement.
ALSO READ: Kotak Mahindra Bank cuts base rate by 0.25 percent to 9.50%
Besides, four public sector lender Allahabad Bank, Dena Bank, Bank of Maharashtra and State Bank of Bikaner and Jaipur (SSBJ) reduced their base rate by up to 0.30 percent.
After reduction, base rate of Dena Bank and Bank of Maharashtra will be 9.70 percent from 10 percent while the new rate for SBBJ and Allahabad Bank will be 9.70 percent, effective October 5.
Meanwhile, Punjab National Bank also reduced interest rate on fixed deposit rate on various maturities by 0.25 percent.
Yesterday around six banks including PNB, BOB, IDBI Bank, Axis Bank slashed base rate by up to 0.4 percent.
Rate cut has been triggered by Reserve Bank revising downward its benchmark short-term lending (repo) rate by 0.50 percent in its fourth bimonthly monetary policy review on Tuesday.
