The Bangalore based Karnataka Bank has announced that it has cut its base rate by 0.25 percent. Its new base rate is 10.75 percent, which has become effective from November 10.
Base rate is the minimum interest rate below which banks are not allowed to lend. While announcing the rate cut, the bank said, "The Bank's base rate now stands reduced to 10.75 per cent from the earlier 11 per cent."
In addition to this, it has also slashed its fixed deposits interest rates by 0.25 percent.
It is to be noted that following the decrease in its base rate, all its retail loans which are linked to base rate will be available for 0.25 percent less interest rate. On the matter, it said, "The said reduction is applicable to the existing loans and also for the future loans. This will enable retail and MSME customers to avail funds at reduced rates and to stay competitive in their market."