IDBI Bank cuts lending, deposit rates by 0.25 per cent

Within hours of Reserve Bank reducing the key policy rates, IDBI Bank today slashed its lending and deposit rate by 0.25 per cent.

"The new base rate or minimum lending rate (at 10.25 per cent) will be effective from February 1," the bank said in a release.

The base rate is the minimum lending rate below which banks cannot offer any loan to customers.

IDBI Bank was the first one to cut lending rates following the announcement of the RBI to reduce short-term lending rate by 0.25 per cent and deciding to slash Cash Reserve Bank (CRR) by same margin to inject Rs 18,000 crore of liquidity into the system.

Mumbai-based IDBI Bank has reduced the benchmark prime lending rate (BPLR) and fixed deposit rates on select maturities by 0.25 per cent.

"IDBI Bank has taken this proactive step keeping in view the policy measures announced by the RBI in its third quarter review of monetary policy today," it said.

The reduction in interest rate is expected to positively impact loan growth both in retail and corporate segments.

Various other banks including the market leader State Bank of India (SBI) said that they would take a call on reducing interest rates in coming days.

National Housing Bank (NHB) has earlier announced cut in lending rates by 0.25 per cent benefiting the home loan borrowers.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Steps towards transparency in the real estate sector are long overdue

    Searching for black money in India’s real estate sector, which constitutes 11 per cent of the country’s $ 2 trillion GDP, is like searching for th

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

Reaping from the core of the earth

Geothermal energy is energy generated from inside the earth’s crust. ...

Zehra Naqvi

For the love of language

A video doing the rounds in social media these days ...

Dharmendra Khandal

‘Poop’ coffee anyone? If civets suffer, so be it

That a drink which proudly associates itself with animal poop ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture