State Bank of India (SBI), country's largest bank, on Tuesday decided to cut its base or minimum lending rate by 15 basis points (bps) to 9.7%, effective June 8.

Other peer banks ICICI Bank and HDFC Bank are likely to follow suit.

SBI's base rate cut comes the same day when the RBI cut its key interest rate or repo rate by 25 bps to 7.25% in it bi-monthly monetary policy of 2015-16.

SBI had previously cut its base rate by 15 bps on April 7 after the RBI's first bi-monthly policy where RBI had maintained a status quo keeping the repo rate unchanged at 7.50%.

The reduction of 25 bps cut in the repo rate by RBI was its third monetary easing this year.