Syndicate Bank has cut its base rates by 25 bps to 10.50 per cent and the Benchmark Prime Lending Rate by 25 bps to 14.75 per cent from 15 per cent with effect from 1 May, 2012.

The bank announced a reduction in its lending rates after a similar move by other large banks in the country. The bank said that the new rates will be for domestic term deposits upto Rs 15 lakh under select maturity buckets starting from April 23, 2012.

The consumer loans from the bank including home and auto loans are likely to become cheaper after the new rates come into effect. The loan rate for working capital and project loans will also come down, making it cheaper for corporate to borrow money from the bank.

The move by the banks comes after the central bank, the Reserve Bank of India (RBI) reduced its key interest rates for the first time in three years in order to boost the slowing economic growth on Tuesday. The central bank announced 50 basis points cut in its policy repo rate to 8 per cent but pointed out that there is very little possibility for any further reduction in the rates.