New Delhi: Three banks, including Indian Bank and Citi, on Monday reduced their lending rates by up to 0.3 percent, making home, auto and corporate loans cheaper for borrowers.
Oriental Bank of Commerce (OBC) has cut its base rate or minimum lending rate by 0.15 percent to 10.25 percent.
"This is to inform that the bank has reduced base rate from 10.40 percent to 10.25 percent effective from February 25, 2013," OBC said in a statement.
The reduction in base rate would make loans such as auto and home cheaper to customers.
Another public sector lender Indian Bank reduced lending rate by 0.30 percent to 10.20 percent with effect from February 9, 2013.
It has also decided to cut its benchmark prime lending rate by 0.25 percent.
"The Benchmark Prime Lending Rate of Indian Bank is reduced by 0.25 percent from the existing 14.75 percent to 14.50 percent per annum with effect from February 9, 2013," Indian Bank added.
Foreign lender Citi reduced its base rate by 0.25 percent to 9.50 percent driven by easing of market liquidity conditions reflected in lower deposit rates.
Many banks including State Bank of India, IDBI Bank, Punjab National Bank and Union Bank of India have already cut their base rates following RBI's decision to reduce short-term lending rate in third quarter monetary policy review in late January.