New Delhi: India's second largest state-run lender Punjab National Bank Thursday cut its base rate -- benchmark for pricing all loans -- by 25 basis points to 10.25%, after the Reserve Bank of India cut its key policy rate for the first time in nine months earlier this week.
The bank's base rate cut will be effective from February 9, 2013, Punjab National Bank said in a filing to the stock exchanges.
Earlier Tuesday, the RBI cut the repo rate by 25 basis points to 7.75% to support the faltering economy and reduced the cash reserve ratio (CRR) by the same amount to 4% to boost liquidity in the system.
India's largest lender State Bank of India also cut its base rate by 5 basis points to 9.7% on Wednesday, while state-run IDBI Bank and foreign lender Royal Bank of Scotland pared their base rate on the day of the RBI's monetary easing.
The country's second largest private sector lender HDFC Bank cut lending rates by up to 50 basis points for auto segment earlier Wednesday.