Foreign lender, Citibank announced a 25 basis points reduction in its prime lending rate (PLR) to 14.75% from 15%.

In a statement released by the bank, it said that the new PLR would be effective from May 1st.

The statement further said, "This reduction is in line with the prevailing monetary policy of the Reserve Bank of India, lower deposit rates and overall cost of funds."

Last time Citibank revised down its PLR by 50 basis points to 15% from 15.5% in November 2008.

Following the announcement of cut in policy rates by the RBI, private lender ICICI bank slashed its PLR by 50 basis points to 16.25%. The bank also lowered its floating reference rate to 13.25%.

Meanwhile there are other lenders like Punjab National Bank (PNB) that admits a scope for rate cut after the reduction in key policy rates.