NEWS & ADVICE : HOME LOANS
Base rate hiked by many banks; loans may become costlier
By Joseph Samson
Oct 1, 2010
Print    Email    RSS   

Many commercial banks have revised their base rates owing to the rising costs of borrowings. These banks include names like Punjab National Bank, IDBI Bank, Allahabad Bank and Axis Bank.

Some banks like State Bank of India, Punjab National Bank and IDBI Bank have also raised their deposit rates following the recent hike in policy rates by Reserve Bank of India.

According to SS Ranjan, CFO, State Bank of India, the bank has no intentions of raising base rate till mid November. "While the cost of deposits has gone up we can absorb the cost for some more time."

MV Nair, CMD, Union Bank of India said, "We will review our base rate towards the end of October based on our funding cost."

PNB, IDBI Bank and Allahabad Bank have raised their base rates by 50 basis points to 8.5%. Axis Bank has raised base rate by 25 basis points to 7.75%.

Base rate hike is however not expected to bring major impact on the existing borrower base of these banks as most of them have loans associated with BPLR.


 


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

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Home Loan Agreement: An important aspect...
Joint Home Loan: A wise decision for a...
Carnival of Indian Personal Finance Blogs #6
Carnival of Indian Personal Finance Blogs #4
Identify the cheapest home loan offer


PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive