Private sector HDFC Bank has cut base rate or minimum lending rate by 0.15 per cent, a move which will lower EMIs for its borrowers.
The base rate of the bank is 9.70 per cent with effect from June 15, HDFC Bank said on its website.
Prior to the cut, the base rate of the country’s second largest private sector lender was 9.85 per cent.
The bank had last cut its base rate on April 13, by 0.15 per cent to 9.85 per cent following RBI first bi-monthly monetary policy review.
Over a dozen banks including largest public sector lender State Bank of India have cut their minimum lending rates after RBI reduced its policy rates by 0.25 per cent in its second bi-monthly policy review for 2015-16 on June 2.
Also, several banks have cut the rates of interest they offer to customers for keeping their deposits.
Banks have now slowly started passing on the benefits of RBI’s new repo rate (the rate at which it gives loans to banks), bringing down the cost of various types of consumer loans such as auto, home and retail.
Among others, Allahabad Bank, Dena Bank, Punjab National Bank, Central Bank of India and Syndicate Bank have announced cut in base rates.