RSS Feed
Twitter
6:57 PM
Blogger
Axis Bank, India’s third largest private sector bank, has cut its base rate to 10.15 per cent from 10.25 per cent per annum.
The move comes against the backdrop of ample liquidity in the banking system and tepid credit growth.
The new base rate is effective from October 15. Base rate is the minimum lending rate below which banks cannot lend.
The bank said the cost of funds has eased due to more liquidity and this has helped to reduce interest rates.
Following the reduction, the effective rate applicable to loans linked to this rate will be reduced by 10 basis points, the bank said in a statement. One basis point is one hundredth of a percentage point.
However, peer private banks ICICI Bank and HDFC Bank, continue to have the lowest base rate of 10 per cent.
Amid comfortable liquidity and low credit demand in the market, several banks, including the country’s largest lender State Bank of India, have been reducing their bulk and retail term deposit rates in select maturity buckets.
Axis Bank shares closed marginally weaker at Rs393.90 a share on the BSE on Thursday.
Source : The Hindu
The move comes against the backdrop of ample liquidity in the banking system and tepid credit growth.
The new base rate is effective from October 15. Base rate is the minimum lending rate below which banks cannot lend.
The bank said the cost of funds has eased due to more liquidity and this has helped to reduce interest rates.
Following the reduction, the effective rate applicable to loans linked to this rate will be reduced by 10 basis points, the bank said in a statement. One basis point is one hundredth of a percentage point.
However, peer private banks ICICI Bank and HDFC Bank, continue to have the lowest base rate of 10 per cent.
Amid comfortable liquidity and low credit demand in the market, several banks, including the country’s largest lender State Bank of India, have been reducing their bulk and retail term deposit rates in select maturity buckets.
Axis Bank shares closed marginally weaker at Rs393.90 a share on the BSE on Thursday.
Source : The Hindu
0 comments:
Post a Comment