Following the cash reserve ratio and repo rate cut by the Reserve Bank of India, large public sector banks slashed their base rates by 25 basis points (bps).
Punjab National Bank slashed its base rate by 25 basis point to 10.25 per cent. Union Bank of India also announced the same while declaring its third quarter results.
Mr. K R Kamath, Chairman and Managing Director of PNB said, "There is a need for monetary transmission. So, we have reduced the base rate. This would provide a much-anticipated relief to borrowers having floating rate advances linked to the base rate".
"We have decided to cut the base rate by 25 bps effective from February 9. Deposit rates have not been changed as of now," said Mr. D Sarkar, chairman and managing director, Union Bank of India.
ICICI Bank is yet to make the reduction in its lending rates. State Bank of India also revised its lending rate to 9.70 per cent.