The public sector bank, IDBI Bank, has reduced its interest rates on loans and deposits segments by about 0.25 percent.
Announcing the rate cuts, the bank issued a statement which said, "The new base rate or minimum lending rate (at 10.25 per cent) will be effective from February 1."
It should be noted that base rate is the minimum rate below which banks are not allowed to lend to borrowers. Also, following the CRR and repo rate cut by Reserve Bank of India, the Mumbai based IDBI Bank has become the first bank to slash its rates.
The bank has slashed its benchmark prime lending rate (BPLR), and interest rates on fixed deposits having certain maturities by about 0.25 percent.
The statement further said, "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."
The lowering of rates in these segments is expected to increase its growth in retail aas well as corporate segments.