Andhra Bank cuts minimum lending rate by 0.25%
New Delhi: State-owned Andhra Bank Tuesday reduced its benchmark lending rates by 0.25 percent to 10.25 percent, making home, auto and corporate loans cheaper for borrowers.
The bank has decided to revise the base rate or minimum lending rate downwards by 0.25 percent from the existing 10.50 to 10.25 percent, Andhra Bank said in a filing on the BSE.
Besides, it has also decided to revise the Benchmark Prime Lending Rate (BPLR) by similar percentage points to 14.50 percent.
The new rates would be effective from March 1, it said.
Several lenders, including State Bank of India (SBI), Punjab National Bank, Bank of India, Bank of Baroda and IDBI Bank have cut lending rates following easing of monetary policy by the Reserve Bank.
In its third quarter policy review on January 29, RBI had lowered key short-term lending rate by 0.25 percent and also injected Rs 18,000 crore liquidity through similar reduction of Cash Reserve Ratio.
The repo rate, at which RBI lends to banks, was eased after a gap of nine months as the central bank fought the stubbornly high inflation through tight money policy, leading to high interest rate regime.