New Delhi: Indian private sector lender Tamilnad Mercantile Bank Ltd has cut its base rate -- benchmark for pricing all loans -- by 25 basis points to 10.75%, after the Reserve Bank of India cut its key policy rate for the first time in nine months earlier on Jan 29.
The base rate cut will come into effect from Feb 11, 2013, Tamilnad Mercantile Bank said in a statement.
The bank also reduced its prime lending rate by 25 basis points to 16.5% with effect from the same date, it added.
On Jan 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 banks, including the country's largest lender State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Indian Bank, Bank of Maharashtra, Vijaya Bank, IDBI Bank and UCO Bank, have also cut their base rate after the RBI's monetary easing.