Following top banks, Kotak Mahindra Bank has also reduced its minimum lending rate or the base rate to 9.85 per cent p.a. thereby lowering EMIs on loans.
The new rates will be effective April 16 and will stay revised from the earlier rate of 10 per cent p.a.
"All categories of loans (other than the exceptions permitted by RBI) will be priced with reference to the revised Base Rate," the bank said in a statement.
After pressure from the Reserve Bank of India to transmit policy interest rates, top banks including State Bank of India, ICICI Bank, HDFC Bank and Axis Bank have reduced their base rate.
At present, ICICI Bank's base rate stands among the lowest in the industry at 9.75 per cent.
Earlier this month, Kotak Bank also received RBI approval to merge ING Vysya Bank with it effective from April 1, making Kotak the fourth-largest private bank in the country.
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