IDBI Bank slashes lending, deposit rates by 0.25 per cent

Business

oi-Sneha

By Sneha B K

Published: Wednesday, January 30, 2013, 10:30 [IST]

After the Reserve Bank of India (RBI) reduced the repo rates and CRR rates, IDBI Bank slashed its lending and deposits rate.

The loans will become cheaper by 25 bps reduction in its Base Rate to 10.25% with effect from February 1, 2013.

IDBI Bank has taken this pro-active step, keeping in view the policy measures announced by the RBI in its 3rd quarter review of Monetary Policy on Tuesday.

The reduction in interest rate is expected to positively impact loan growth; both in the retail consumer segment, as also revitalize fixed capital formation through higher corporate sector lending, thereby supporting the growth impulses in the economy.

The Bank has also decided to reduce the Retail Term Deposit Rates in select buckets by 25 bps with effect from February 1, 2013.

Shares of the bank were seen trading at Rs 107, higher by 0.65% on BSE at 10.25 am IST.

GoodReturns.in