New Delhi: State-run lender Indian Overseas Bank Monday cut its base rate -- benchmark for pricing all loans -- by 25 basis points to 10.25%, joining other banks to make lending rates attractive after the Reserve Bank of India cut its key policy rate for the first time in nine months on January 29.
The base rate cut will come into effect from February 18, 2013, according to the bank's website.
However, the bank did not revise its benchmark prime lending rate (BPLR), which is at 15.5%.
Earlier on January 29, the RBI cut the key policy repo rate by 25 basis points to 7.75% to support the faltering economy and also reduced the cash reserve ratio (CRR) by the same amount to 4% to boost liquidity in the system.
Other major banks, including the country's largest lender State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Indian Bank and IDBI Bank, have also cut their base rate after the RBI's monetary easing.