IDBI Bank cuts base rate by 25 bps

Public sector lender IDBI Bank on Thursday cut its base rate by 0.25 per cent or 25 basis point. The bank's new base rate now stands at 10 per cent and will be effective from May 11, 2015. The bank has also decided to reduce the retail term deposit rates in select buckets by 10-25 bps with effect from May 11, 2015. Base rate is the rate below which a bank cannot lend to borrowers. 

The rate cut comes a day after Punjab National Bank too cut its lending rate by 25 bps. The bank revised downwards minimum lending rate to 10 per cent from 10.25 per cent, effective May 7, PNB said in a statement.