New Delhi: State Bank of Mysore (SBM), an associate of State Bank of India (SBI), on Monday cut the minimum lending rate by 0.10 per cent to 9.90 per cent.
"The bank has revised downward the base rate from 10 per cent to 9.90 per cent to be effective from today," SBM said in a filing to the BSE.
Base rate is the minimum rate below which banks are not allowed to lend.
At present, private sector HDFC Bank offers the base rate, which is the lowest in the industry at 9.35 per cent.
The Reserve Bank of India (RBI) in its last monetary policy review left short-term lending (repo) unchanged at 7.25 per cent.
The central bank will announce its next bimonthly monetary policy on September 29.
It is widely expected that the RBI may cut the repo rate by 0.25 per cent as inflation has been keeping below expectations.
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