IDBI Bank has cut deposit rates by 10-50 basis points across various maturities. It has also pared lending rate benchmarks — base rate and benchmark private lending rate — by 25 basis points.
The public sector bank is the first bank to cut rates following the 50 basis points cut in repo rate by the RBI.
Following the rate cut, the new base rate is 10.5 per cent and the BPLR is 15 per cent, said Mr P. Sitaram, Chief General Manager, IDBI Bank.
“The impact of the rate cut on the margin will be neutral as we have adjusted the interest rates on assets as well as liabilities,’’ said Mr Sitaram.
Meanwhile, banking behemoth State Bank of India is expected to soon take a call on cutting deposit and lending rates.