Indian Bank Slashes Base Rate By 30 Basis Points

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State-run Indian Bank has also joined the list of lenders cutting lending rates following the Reserve Bank of India's (RBI) aggressive interest rate cut of 50 basis points on September 29.

The government-owned bank has announced that it has decided to reduce its base rate by 30 basis points to 9.65 per cent, making auto and home loans cheaper for Indian Bank's customers.

Indian Bank Slashes Base Rate By 30 Basis Points
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The Chennai-based bank said that the new base rate will be applicable from October 7, 2015, Wednesday.

The public sector bank said that the decision to cut lending rates was taken after the RBI cut its repo rate to 6.75 per cent from 7.25 per cent amid waning inflationary pressures in Asia's third biggest economy, which prompted the bank's Asset Liability Committee (ALCO) to pass on the reduction to customers.

Other lenders such as the State Bank of India (SBI), Punjab National Bank (PNB), IDBI Bank, Bank of Baroda, Bank of India, Union Bank of India, Axis Bank, ICICI Bank among others have also undertaken a downward revision in their base rates, following the RBI's bigger than expected policy rate cut last month.

Read more about: indian bank
Story first published: Monday, October 5, 2015, 8:50 [IST]
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