Karnataka Bank cuts lending rate by 0.25%

Karnataka Bank on Thursday reduced base rate, or minimum lending rate, by 0.25 percent to 10.75 percent with effect from November 10, 2012.

Updated: Nov 15, 2012, 18:54 PM IST

New Delhi: Karnataka Bank on Thursday reduced base rate, or minimum lending rate, by 0.25 percent to 10.75 percent with effect from November 10, 2012.

"The Bank's base rate now stands reduced to 10.75 percent from the earlier 11 percent," it said in a filing to the BSE.

It also reduced rate of interest on deposits by 0.25 percent.

With the reduction in base rate, all loans linked to the base rate would be cheaper by 25 basis points (0.25 percent).

"This 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," it said.

Also, the housing loan up to Rs 25 lakh will attract interest rate of 10.75 percent and car loans 11.25 percent per annum.

PTI