Indian Overseas Bank has reduced its benchmark lending rate (BPLR) by 50 basis points to 12 percent following the suit of cuts in lending rates by the other public banks.

The revised lending rates will be applicable on new and exitsing credit advances with floating reference rates (FRR).

Public sector players have been slashing lending rates taking the finance minister call for reducing the interest rates. The Union Bank of India softened its lending rates by 25-basis point to 11.75 percent with effect from July1, from the earlier 12 percent per annum.

Following this, the State Bank of India and its associate bank, State Bank of Mysore also reduced the lending rates by 50 basis points to 11.75 percent p.a. and 12.25 percent p.a. repectively with effect from June 29 onwards.