Another PSU lender Bank of Baroda today lowered its lending rates by 0.25 per cent, making home, auto and corporate loans cheaper for its borrowers.
The new rates would be applicable from February 9, BoB said, adding it has also realigned its deposit rates for short maturities in the band of 0.15 per cent to 0.20 per cent.
The base rate and Benchmark Prime Lending Rate (BPLR) was also lowered by 0.25 per cent each with effect from February 9, BoB said in a filing to the BSE.
With this the bank's base rate and BPLR now stands at 10.25 per cent and 14.50 per cent respectively.
Host of lenders, including State Bank of India (SBI), Punjab National Bank (PNB) and HDFC Bank, have cut their lending rates, following the easy money policy of the Reserve Bank.
The RBI in its third quarter policy review on January 29 had lowered key short term lending rate by 0.25 per cent and also injected Rs 18,000 crore liquidity through similar reduction of Cash Reserve Ratio.
Shares of BoB were trading at Rs 866.95, down 0.05 per cent over previous close on the BSE.