The Royal Bank of Scotland (RBS) today announced a 75 basis points (bps) cut in its base lending rate to 9 per cent from the existing 9.75 per cent. The base rate is the benchmark to which all loan rates are linked.
RBS is the first foreign bank to reduce the benchmark rate after the Reserve Bank of India cut key policy rate and cash reserve ratio or CRR (share of bank deposits parked with the RBI) by 25 bps each in its third quarter monetary policy review yesterday.
Brijesh Mehra, MD and Country Head, International Banking, RBS said, “The RBI move to cut repo and CRR by 25 bps is in sync with our expectations. In line with the potential deflationary environment, RBS has decided to cut its base lending rate."
beena.parmar@thehindu.co.in