Effective February 1, IDBI Bank reduced its deposit and lending rates by 25 basis points after the Reserve Bank of India (RBI) cut policy repo rate and banks' cash reserve ratio (CRR).
In its third quarter review of monetary policy, RBI cut repo rate by 0.25 per cent and slashed CRR by the same margin to inject Rs 18,000 crore of liquidity into the system.
Following this, IDBI Bank reduced the benchmark prime lending rate (BPLR) and fixed deposit rates on select maturities by 0.25 per cent. Thus, the new base rate or minimum lending rate becomes 10.25 per cent, the bank said in a release.
The reduction in interest rate is expected to positively impact loan growth both in retail and corporate segments.
National Housing Bank (NHB) earlier announced cut in lending rates by 0.25 per cent benefiting the home loan borrowers.