PNB, IDBI Bank and ICICI Bank cut deposit, lending rates

Close on the heels of state-run Punjab National Bank and IDBI Bank reducing their lending and deposit rates by 25 basis points each, private sector ICICI Bank also announced a 25 basis point reduction in its base lending rates, indicating a proportionate reduction in rates across its loan portfolio.

ICICI Bank, the country's largest private sector lender, is reducing its lending and deposit rates by 25 basis points each.

ICICI's benchmark prime-lending rate will now be 18.5 per cent against 18.75 per cent and in the floating reference rate for consumer loans (including home loans) will be 15.5 per cent against 15.75 per cent earlier.

Both PNB and IDBI had reduced their base lending rates to 9.75 per cent with effect from 23 April, against the existing rate of 10 per cent.

The RBI had announced a 50-basis point reduction in its policy rate in its monetary policy review on 17 April.

The country's biggest lender, the State Bank of India (SBI) had said it would cut interest rates following the 50 bps reduction in RBI's repo and reverse repo rates.