State Bank of Bikaner & Jaipur cuts base rate to 9.95%

SBI associate bank State Bank of Bikaner & Jaipur has cut the minimum lending rateby 15 basis points to 9.95%.

The base rate is 10.10% and will be reduced to 9.95% with effect from June 18, 2015, the bank said in a filing to BSE today.

The rate cut follows reduction in minimum lending rate by larger peers post RBI’s second bi-monthly policy announcement earlier this month where the central bank lowered key policy rate for the third time this year.

The cut in rate will bring down cost of all loans linked with the base rate.

State Bank of India (SBI), the country’s largest bank had took the lead in lowering its base rate by 15 basis points (bps) to 9.70% soon after Reserve Bank of India (RBI) governor Raghuram Rajan nudged banks to do so while announcing the monetary policy.

Allahabad Bank, Dena Bank, Punjab & Sind Bank followed suit and have effected rate cuts.

In a meeting with PSU bankers last week, Finance Minister Arun Jaitley said that bankers have assured the government to make greater cuts in interest rates in the coming days.