Vijaya Bank has set its minimum lending rate at 8.25 per cent.
The base rate, which kicks in today, is the rate below which banks cannot extend loans to either corporates or individual borrowers.
"The base rate has been worked out in accordance with the Reserve Bank of India guidelines and we shall be fine-tuning it further, if needed, before it settles down by December 2010," Albert Tauro, Chairman & Managing Director of the Bank said.
"There will be no significant impact of the new system either on volume of advances or margins," he added.
