Bank of India reduced its base rate by 25 basis points to 10 per cent, according to a release filed with the Bombay Stock Exchange. Earlier, the base rate of the bank was 10.25 per cent per annum.
The revised rate will be effective from July 8, the release said.
This move comes after the Finance Ministry on Wednesday advised banks to cut their base rates. A base rate cut will pave the way for reducing lending rates, thereby reviving projects and revving up economic growth.
The Reserve Bank of India in its mid-quarter monetary policy review on June 17 left the repo rate and cash reserve ratio (CRR) unchanged at 7.25 per cent and 4 per cent respectively.
Repo rate is the rate at which the RBI lends short-term funds to banks. CRR is the share of bank deposits parked with the RBI.