Mumbai, Nov 2 (PTI) South-based lender Lakshmi Vilas Bank today lowered its base rate or the minimum rate of lending by 0.25 per cent to 10.70 per cent.
The rate reduction has been done following the Reserve Bank's surprise 0.50 per cent rate cut at the last policy announcement, the private player said in a statement.
A majority of the lenders have cut their offerings aggressively in an environment where credit growth is in the single digits, at multi-year lows.
At present, country's largest lender State Bank of India has the most aggressive posturing with a base rate at 9.30 per cent, followed by others like HDFC Bank and ICICI Bank.
While the banks have not passed the entire 1.25 per cent reduction in key rates effected by RBI this year citing a lag in repricing of deposits, they have said that interest rates are on the downward spiral.