State-owned Allahabad Bank on Saturday announced a cut of up to 40 basis points in interest rates on external benchmark-linked products.

“The asset liability management committee (ALCO) of the Bank has decided to revise interest rates for the products linked to an external benchmark with effect from March 1, 2020,” the bank said in a regulatory filing.

While the RBI’s repo rate remains unchanged at 5.15 per cent, the three-month MIBOR (average) has reduced to 5.75 per cent from 6.15 per cent. MIBOR refers to the Mumbai Interbank Offered Rate.

Public and private sector banks have migrated to an external benchmark rate lending at the behest of the Reserve Bank of India.

Floating rate personal loans and retail loans have already been linked to external benchmarks.

The RBI repo rate, treasury bill yields, and other market linked rates published by FBIL (Financial Benchmark India Private Ltd) are among the benchmarks.