Federal Bank Slashes Base Rate

Federal Bank today cut the base rate, or the minimum lending rate, by 0.25 per cent to 9.95 per cent.

The new rates will be effective from June 18, 2015.

"Effective June 18, 2015, the applicable base rate will be 9.95 per cent, a reduction of 25 basis points (0.25 per cent) from prevailing rate of 10.20 per cent," the private sector bank said in a filing to the BSE.

Soon after RBI's second bi-monthly policy review for 2015-16 on June 2, a number of banks, including largest public sector lender SBI, have cut the minimum lending rates.

Also, several banks have cut the rates of interest they offer to customers for keeping their deposits.

Banks have now slowly started passing on the benefits of RBI's new repo rate (the rate at which it gives loans to banks), bringing down the cost of various types of consumer loans such as auto, home and retail.

Among others, Allahabad Bank, Dena Bank, Punjab National Bank, Central Bank of India and Syndicate Bank have announced cut in base rates.

Meanwhile, Federal Bank shares today closed 1.66 per cent down at Rs 133 apiece on the BSE.