More banks cut base rate

Andhra Bank has cut the base rate and benchmark prime lending rate (BPLR) by 0.25 per cent with effect from May 1.

While the base rate is cut to 10.5 per cent from 10.75 per cent, the BPLR is reduced to 14.75 per cent from 15 per cent, the bank has said in a notification to the stock exchanges today.

Oriental Bank of Commerce has informed the Bombay Stock Exchange that the bank has reduced the base rate by 15 basis points from 10.65 per cent to 10.5 per cent with effect from May 14.

Canara Bank has decided to reduce its base rate by 25 bps from 10.75 per cent to 10.5 per cent and BPLR by 25 bps from 15 per cent to 14.75 per cent with effect from May 1.

Deposit rates also stand reduced by 10 bps to 50 bps under select maturities with effect from May 1.

Agri term loans

The bank has also decided to effect an additional reduction of 25 bps (0.25 per cent) in all agricultural term loans beginning May 1, 2012. (This would mean that agricultural term loans in Canara Bank would now be cheaper by 0.5 per cent per annum).

This move is aimed at encouraging investments in rural godowns, cold storages, farm mechanisation, minor irrigation and allied activities, a bank press release said.