State Bank of Mysore has reduced its base rate for lending by 25 bps to 10.25% from 10.5% from Wednesday
New Delhi: State Bank of Mysore (SBM), a subsidiary of State Bank of India has decided to reduce lending rate by 0.25% effective from Wednesday, reports PTI.
The base rate has been reduced to 10.25% from 10.50%, State Bank of Mysore said in a statement.
Base rate is the minimum lending rate below which a bank cannot lend.
Loans linked to base rate of the bank will become cheaper by at least 0.25%.
Last month, SBI slashed lending rate by 0.25% to to 9.75%, the lowest base rate in the banking sector.
The decision by the country's largest bank comes a day after the Reserve Bank of India (RBI) cut CRR by 0.25% to 4.5% injecting Rs17,000 crore into the system.
SBI also reduced the benchmark prime lending rate (BPLR) by 0.25% to 14.50% last week. The rate cut would benefit those who availed of loans before July, 2010.
The base rate mechanism came into effect in July 2010 as a new transparent alternative to the earlier benchmark prime lending rate.
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