Bank of Baroda cuts down base rate by 0.35%, BPLR also reduces
Mumbai: State-owned lender Bank of Baroda will reduce its base rate by 0.35 per cent with effect from October 1. According to the official sources, the public sector bank’s base rate will cut down to 9.15 per cent per annum.
As per stated in a Bombay Stock Exchange (BSE) filing, besides reducing its base rate to 9.15 per cent, the lender will also reduce its BPLR (Benchmark Prime Lending Rate) by 0.35 per cent to 13.45 per cent per annum.
The base rate is the minimum rate below which a bank cannot lend. The bank has revised this rate downward from existing 9.50 per cent per annum to 9.15 per cent per annum from October 1, 2017.
The benchmark prime lending rate (BPLR), the method which charges interest on the creditworthiness of customers, will also come in effect from next month. The current BPLR is 13.80 percent per annum.
It is to be mentioned that Shares of Bank of Baroda were trading 0.25 per cent up at Rs 138.95 on BSE as on September 28.