Banks to follow competitive pricing with base rate
By Neelima Shankar
May 21, 2010
Print    Email    RSS   

With the banking industry going to shift to the base rate system of lending from 1 July 2010 , all banks are busy calculating their respective base rates on which they would be baisng their loan pricing schedule there upon.

It is expected that the industry average for base rate would be between 8-9%. But some banking majors like SBI, HDFC Bank and others like Kotak Mahindra Bank are keen on developing a competitive scenario by aiming at a more aggresive rate below 8%.

Sources suggest that SBI is targetting a rate somewhere between 7-8.5%. While HDFC Bank has a target of 6.5%, Kotak Mahindra Bank is aiming at 6.5-7%.

Many banks are said to be targetting their base rate depending on the rate set by SBI.

Axis Bank is looking pricing its base rate between 8-9% whereas Punjab National Bank is looking at base rate above 8%. Dena Bank and Bank of India are expecting their rates to be above 8%.




(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Haven’t filed a return of your income?...
Carnival of Indian Personal Finance Blogs...
Recurring deposits: to the benefit of the...
Planning to invest in a bank FD? Think again
Things to know before retirement

Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...
Chandigarh@CaℒL Giℛℒ In Rajpura +O9855660911...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive