SRINAGAR: J&K Bank on Monday announced a reduction in its benchmark lending rate by 35 basis points to 9.50 per cent.
The bank revised its benchmark Base Rate—the minimum interest rate at which a bank can lend—by 35 basis points, making loans cheaper for its new and existing clients within and outside the state.
The bank announced the decision after its Asset Liability Committee meeting that was held at its Corporate Headquarters here under the Chairman and CEO Mushtaq Ahmad.
“We have decided to reduce the Base Rate by 35 basis points to 9.50 per cent from existing 9.85 per cent with immediate effect,” Mushtaq said while commenting on the interest rate revision.
“Besides providing the world-class financial solutions and banking services to our customers across the country, we shall continue to extend all other benefits to them as and when the market allows us.”
RBI announced 0.50 per cent cut in its benchmark short-term lending (repo) rate in the central bank’s bi-monthly policy review held on September 30.
The decision of the state-owned J&K Bank, which is the major lender in Jammu and Kashmir, is likely to bring relief to clients in the state.
Among the other banks operating in the state, State Bank of India has already slashed the interest rates, while HDFC Bank had announced a rate cut in late August to pass on the benefits of the RBI’s previous repo rate reductions to the clients.