Oriental Bank of Commerce cuts base rate by 10 bps

Taking the lead, Oriental Bank of Commerce has cut its base rate by 10 basis points to 10.65 per cent with effect from Wednesday.

This move is expected to translate into lower interest rate for borrowers, and comes a week ahead of the Reserve Bank of India's annual credit policy announcement on April 17. The base rate is the minimum rate at which banks can lend to its borrowers.

“We have taken a bold decision ahead of the RBI policy. There are some events in the last few months that have enabled us to take this decision and pass on the cost benefit to our customers,” Mr S. L.Bansal, Chairman and Managing Director, said.

The RBI's move in the recent months to cut the cash reserve ratio has helped OBC get as much as Rs 2,000 crore released. This money was not earning any interest when it was placed with the central bank.

Speculation is rife that the RBI will go in for another 75 basis point reduction in CRR on April 17.

krsrivats@thehindu.co.in