Agrobank has reduced its base rate (BR) to 3.6 per cent and base financing rate (BFR) to 6.75 per cent.

The decision was made after Bank Negara Malaysia decided to reduce the Overnight Policy Rate to 3.0 per cent, the first time since July 2016.

Agrobank president and chief executive officer Syed Alwi Mohamed Sultan said the bank's BR and BFR will be reduced by 25 basis points effective May 16.

In addition, deposit rates were also adjusted downwards by 20 basis points for 12-month tenure and below and 15 basis points for the tenure of over 12 months.

"The lower financing rate is expected to benefit agropreneurs in developing and growing their business while at the same time, the revised profit rate for depositors is also taken care of.

"The revised rate will benefit the agropreneurs and also help boost the growth of the bank's financing. Agrobank aims to grow its financing value to RM1.2 billion in 2019," Syed Alwi said.