State-owned Corporation Bank today reduced benchmark lending rate by 0.25 per cent to 10.25 per cent, making loans including home and corporate cheaper for borrowers.
The bank has revised the base rate or the minimum lending rate from 10.50 per cent, to 10.25 per cent with immediate effect, Corporation Bank said in a filing to Bombay Stock Exchange.
A host of lenders, including State Bank of India (SBI), Punjab National Bank, Bank of India, Bank of Baroda and IDBI Bank have cut lending rates following easing of monetary policy by the Reserve Bank.
In its third quarter policy review on January 29, RBI had lowered key short-term lending rate by 0.25 per cent and also injected Rs 18,000 crore liquidity through similar reduction of cash reserve ratio.
The repo rate, at which RBI lends to banks, was eased after a gap of nine months as the central bank fought the stubbornly high inflation through tight money policy, leading to high interest rate regime.