Bank of India cuts base rate to 9.65%

NEW DELHI: State-owned Bank of India has cut the base or the minimum lending rate by 0.05 per cent to 9.65 per cent with effect from September 30. "The Bank has revised its base rate from 9.70 per cent (existing) to 9.65 per cent, with effect from September 30, 2016," it said in a regulatory filing. The base rate means all those elements of the lending rate that are common across all categories of borrowers. And all categories of loans are required to be priced only with reference to the base rate. As the base rate is the minimum rate for all loans, banks are not permitted to resort to any lending below the base rate. Bank of India stock closed 3 per cent up at Rs 120 per share on BSE.