While the early move was unexpected, aggressive reductions in rates were expected over the course of the year to help India's economy out of a rut, with growth rates struggling to recover.
Indian banking system has seen increase in NPAs and restructured accounts during the recent years.
Bank of India reported an 8 percent growth in its profits in the Juen quarter at Rs 964 crore. It was driven by rise in interest and non interest income components, despite increased asset quality woes.