The rate reduction is in response to last week’s RBI’s decision to slash the key interest rate by 25 basis points for the fourth time this year to support growth.
The bank has also slashed the Marginal Cost of Funds-Based Lending Rate (MCLR ) across all tenures by 5 basis points. With the revision, the one-year maturity MCLR will fall to 8.70 per cent from the existing 8.75 per cent.
Similarly, a one-year maturity rate will be cheaper by 5 per cent to 8.75 per cent and 8.80 per cent, respectively, it said.
The bank has lowered the Base Rate/BPLR to 9.90 per cent from the existing 10 per cent, effective from December 15, it said.
Besides, the bank also decided to cut the fixed deposit rate by 5 basis points for maturity 2 years to less than 3 years to 6.40 per cent effective December 15.
However, the bank has retained interest rates on other maturity buckets, indicating pressure on deposit mobilisation.
The interest rate of the specific tenor scheme of ‘444 days’ that is Amrit Vrishti has been revised from 6.60 per cent to 6.45 per cent with effect from December 15.
