UCO Bank on Wednesday said it has reduced the repo based lending rate by 40 basis points to 6.90 per cent, reflecting the cut announced by the Reserve Bank of India (RBI).

As a result, the retail and MSME loans would get cheaper by 40 basis points, the bank said.

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The city-based bank did not mention any changes to the deposit rates.

The government expects banks to reduce lending rates, which is required to kick start the economy hit hard by the coronavirus-forced lockdown, among other factors.

Since March 1, banks have sanctioned loans worth Rs 6 lakh crore.

UCO Bank has sanctioned loans worth Rs 15,000 crore, of which Rs 12,000 crore has been disbursed. Over 1.36 lakh customers have been benefited, a senior official of the bank said recently.