State Bank of Mysore may hike base rate

Bangalore, Oct. 25: Mr Dilip Mavinkurve, Managing Director, State Bank of Mysore, says: “With cost of funds inching up now for State Bank of Mysore, we could look at increasing our base rate now. When the RBI increased the rates in September, we did not pass it on to the customer. But now, we could hike the interest rates, and our ALCO would meet after the Diwali holiday to decide on this. It would most likely be a 25 basis points hike, as we would look at transmitting the rate hike that the RBI is expecting us to do.

Though inflation has not really been curbed as expected, the base rate effect on inflation is expected to come into force in November or December, as base rates had started going up in November/December last year. We expect a marginal slowdown in inflation in November or December, and then it is expected to come down further by March 2012.’’