State-run UCO Bank on Friday said it has reduced its lending rate linked to the Reserve Bank of India's (RBI) repo rate by 40 basis points.
"We have slashed the repo based lending rate - UCO Float by 0.40 percent to 6.90 percent from 7.30 percent, effective from May 27," the bank said in a late night statement.
This reduction will make loans cheaper for the bank's retail and MSME borrowers, it said.
The cut in repo rate linked lending rates comes after RBI, last week, had reduced repo rate by 40 basis points to 4 percent from 4.40 percent.
Earlier in the day, another public sector bank, Bank of India (BOI), announced a 40 basis points cut in its external benchmark lending rate (EBLR) which is linked to RBI's repo rate from June 1.
The bank's new EBLR has been revised to 6.85 percent per annum.BOI also said it has cut its marginal cost of fund based lending (MCLR) rate by 25 basis points across all tenor.