Bank of India, Canara Bank Cut Lending Rates

State-run lenders Canara Bank and Bank of India cut their base rate or minimum rate of lending by 0.25% to 10.50% following the Reserve Bank of India's move to cut rates.

Both the banks also cut rates on loans under the older benchmark prime lending rate by a similar 0.25% to 14.75%, they said in separate filings to the exchanges.

The revisions are applicable from May 1, 2012.

Their peer Oriental Bank of Commerce (OBC) also cut lending rates by 0.25% to 14.75% only under the BPLR, leaving the base rate untouched.

The announcements by banks come exactly a fortnight after the RBI cut its short term lending rate, the repo rate, by 0.50% to 8% prompted by lower inflation and intended at giving a boost to the sagging growth.

All the bankers had opined that the RBI move would lead to reduction in lending rates. Among those who have announced rate reductions till now are ICICI Bank, Corporation Bank and Central Bank of India.

The country's largest lender, State Bank of India, has till now refrained from cutting its base rate but it has cut lending rates in select products.