Three banks, Oriental Bank of Commerce, Indian Bank and Citi Bank, today reduced their lending rates by up to 0.3 per cent, 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 per cent to 10.25 per cent.
"This is to inform that the bank has reduced base rate from 10.40 per cent to 10.25 per cent 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 per cent to 10.20 per cent with effect from February 9, 2013.
It has also decided to cut its benchmark prime lending rate by 0.25 per cent.
"The Benchmark Prime Lending Rate of Indian Bank is reduced by 0.25 per cent from the existing 14.75 per cent to 14.50 per cent per annum with effect from February 9, 2013," Indian Bank added.
Foreign lender Citi reduced its base rate by 0.25 per cent to 9.50 per cent 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.