 "Axis Bank cuts base rate by 20 bps")
A day after large lenders like State Bank of India (SBI), ICICI Bank and HDFC Bank pared their base rate — the benchmark rate to which all rates are linked — Axis Bank, the third largest private sector lender, has cut base rate by 20 basis points (bps), from 10.15 per cent to 9.95 per cent with effect from April 13. As a result, all loan rates will reduce by 20 bps.
Some public sector banks like Punjab National Bank (PNB) said it will also trim its base rate by up to 25 bps. PNB’s base rate is at 10.25 per cent. “The asset liability committee would be meeting soon for a review,” said a top executive.
On Wednesday, Lakshmi Vilas Bank also reduced its base rate by 0.15 per cent to 11.10 per cent effective April 14.
On Tuesday, both SBI and HDFC Bank had reduced their base rate by 15 bps each (to 9.85 per cent), while ICICI Bank reduced it by 25 bps to 9.75 per cent. These banks tweaked their rates after the Reserve Bank said that future rate cuts would depend on transmission by banks.
Some public sector banks like Punjab National Bank (PNB) said it will also trim its base rate by up to 25 bps. PNB’s base rate is at 10.25 per cent. “The asset liability committee would be meeting soon for a review,” said a top executive.
On Wednesday, Lakshmi Vilas Bank also reduced its base rate by 0.15 per cent to 11.10 per cent effective April 14.
On Tuesday, both SBI and HDFC Bank had reduced their base rate by 15 bps each (to 9.85 per cent), while ICICI Bank reduced it by 25 bps to 9.75 per cent. These banks tweaked their rates after the Reserve Bank said that future rate cuts would depend on transmission by banks.