 "More room for base rate cut in the next few months: Axis Bank")
Axis Bank, the country's third-largest private sector lender, believes base rates could come down further. Base rate is the benchmark to which all lending rates are linked.
"Given that inflation has been coming down, there is room for interest rates to come down," said Shikha Sharma, managing director and chief executive officer.
In July, retail inflation fell significantly to 3.78 per cent. Wholesale inflation fell for a ninth straight month to a historic low of (-)4.05 per cent. At present, Axis Bank's base rate is 9.85 per cent. Recently, the lender also reduced the deposit rates by 25-50 basis points but it said it would take some time to have an impact on the cost of funds.
"We are reducing the cost of deposits only on the new deposits. Therefore, it will take some time to have an impact on our overall cost of funds," said Sharma.
"Given that inflation has been coming down, there is room for interest rates to come down," said Shikha Sharma, managing director and chief executive officer.
In July, retail inflation fell significantly to 3.78 per cent. Wholesale inflation fell for a ninth straight month to a historic low of (-)4.05 per cent. At present, Axis Bank's base rate is 9.85 per cent. Recently, the lender also reduced the deposit rates by 25-50 basis points but it said it would take some time to have an impact on the cost of funds.
"We are reducing the cost of deposits only on the new deposits. Therefore, it will take some time to have an impact on our overall cost of funds," said Sharma.