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Bandhan Bank slashes microloan interest rate by 70 bps, shares up 2.5%

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Bandhan Bank shares were up more than 2 percent in early trade on Tuesday, a day after the lender said it would reduce its microloan interest rate by 70 basis points (bps) to 17.95 percent, which would be applicable to new disbursements from June 18.

Bandhan Bank slashes microloan interest rate by 70 bps, shares up 2.5%
Bandhan Bank shares were up more than 2 percent in early trade on Tuesday, a day after the lender said it would reduce its microloan interest rate by 70 basis points (bps) to 17.95 percent, which would be applicable to new disbursements from June 18.
One basis point is one hundredth of a percentage.
"This reduction would bring down the effective interest rate on microloans to 17.95 percent from the current 18.65 percent," the lender said in a statement.
In last four years since the Kolkata-headquartered lender began operations as a bank, it has reduced microloan rates by 445 bps or 4.45 percent to 17.95 per cent from 22.40 percent.
Bandhan Bank MD and CEO Chandra Shekhar Ghosh said: "I believe, with the reduction in microloan interest rate, more people will find it affordable to borrow money and build sustainable livelihoods for themselves."
At 09:58 am, Bandhan Bank shares quoted at Rs 551.50, up 2.15 percent on NSE. The 50-share benchmark NSE index was higher by 11 points to trade at 11,683.60.
(Inputs from IANS)
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