Axis Bank cuts base rate to by 10 bps to 9.85%

Axis Bank-country’s third largest private sector lender-has cut base rate by ten basis points to 9.85%. The new rates will be effective from June 30th. Base rate is the benchmark rate to which all rates are linked.

Earlier, in April, Axis Bank had cut base rate by 20 basis points from 10.15% to 9.95%. Prior to this, the lender had reduced its base rate by another ten basis points in October last year.

This month several other lenders including State Bank of India, ICICI Bank, HDFC Bank, Allahabad Bank, Federal Bank, Central Bank and Punjab & Sind Bank, among others, have reduced base rate this month.

This move comes after the Reserve Bank of India (RBI) cut the key policy rate or the repo rate by 25 basis point earlier this month. Since January, RBI has cut the repo rate by a total of 75 basis points.

The regulator had said they expected full transmission of the rate cuts by banks to end customers. However, most banks have reduced base rate by 25-30 bps in response to RBI's rate cut of 75 bps.

Axis Bank