The new rates would be effective from May 1, 2012, said a media report. The bank also cut its benchmark prime lending rate by 25 bps to 14.75 per cent and cuts deposit rates by 10-50 bps, report said.
Base rate is the minimum rate at which banks lend to borrowers and depends upon changes in the repo rate of RBI. Repo Rate is that rate at which banks borrow from the Reserve Bank of India.
Most of the public and private sector lenders, such as, State Bank of India, Punjab National Bank, ICICI Bank, IDBI Bank, Union Bank and Corporation Bank, have already slashed their lending rates, with some slashing hours after the central bank gave in to the demands to rate cut on April 17. RBI surprised investors by announcing an unexpected 50 basis points rate cut, the first and biggest in the last three years.