LVB, Citibank cut base rate

Following in the footsteps of large domestic banks, old private sector lender Lakshmi Vilas Bank and foreign lender Citibank reduced their respective base rates by 15 basis points each to 10.95 per cent and 9.35 per cent, respectively. Both the revised base rates are effective from July 1. Lakshmi Vilas Bank cut its base rate from 11.10 per cent to 10.95 per cent, while Citibank pared the base rate from 9.50 per cent to 9.35 per cent. One basis point is 0.01 percentage point. The cut was driven by falling interest rates reflected in lower deposit costs, a Citibank statement said.