Mumbai: Private sector Axis Bank has cut its lending rate by 0.1 per cent to 10.15 per cent from 10.25 per cent.
Its interest rate is now closer to the big three peers that have their minimum lending rates at 10 per cent.
The new rates are applicable from October 15, the third largest private sector lender said in a statement today.
"We have reduced the base rate by 10 basis points as the cost of fund has eased due to softening of interest rates based on improving liquidity and other macro-economic developments," Axis Bank Treasury Business banking) and capital markets President Sidharth Rath said in a statement.
The new rates, applicable to various fund-based credit limits which are linked to the bank's base rate, will reduce by 10 basis points or 0.1 per cent, the bank said.
Banks, led by SBI, have been cutting term deposit rates amid signs of weak credit growth, which for the fortnight ended October 3 stood at 11 per cent against a deposit growth of 13.05 per cent.
While the largest lender SBI had lowered the pricing of its term deposit rate thrice in the second quarter for various maturities, Punjab National Bank and Central Bank had also reduced the same in the past fortnight.