A bunch of public sector banks like State Bank of India, Bank of Baroda, Punjab National Bank, and Union Bank had announced their base rates on Tuesday. SBI has set its base rate at 7.5% while PNB and BoB have fixed their base rate at 8%.
Most public sector banks are likely to fix their base rate between 7.5% and 8% while their private peers may stick to a rate of 7.5-8%. HDFC Bank may fix its base rate around 7%.
Earlier today, Uday Kotak of Kotak Mahindra Bank said the bank will announce its base rate in the evening. Today is the last day by when all banks have to announce their base rates.
In an exclusive interview to CNBC-TV18, Romesh Sobti, MD and CEO, IndusInd Bank, said the base rate is likely to be between 7% and 8%. "Public sector banks will place their base rate around 7.5%. There may be a variation of 0.5-1% in the base rate."
He expects his bank's base rate to be below 8%. "We will announce our base rate in the afternoon."
July to September will be a learning period for all the banks. Going forward, more frequent changes are expected in the equated monthly installments (EMI) of customers.
Sobti feels the responsiveness to monetary actions will be faster. "The impact on yield will be very minimal."
Over the last 3-6 months, the demand pull from corporates is very high, he added.
RK Bakshi, Executive Director, Bank of Baroda, said that less than 2-3% of the bank's loan book is below 8%. "Public sector undertakings account for 77% of the corporate loan book."
Source http://www.moneycontrol.com/news/business/banks-likely-to-set-base-rate-between-78-indusind_467095.html
Most public sector banks are likely to fix their base rate between 7.5% and 8% while their private peers may stick to a rate of 7.5-8%. HDFC Bank may fix its base rate around 7%.
Earlier today, Uday Kotak of Kotak Mahindra Bank said the bank will announce its base rate in the evening. Today is the last day by when all banks have to announce their base rates.
In an exclusive interview to CNBC-TV18, Romesh Sobti, MD and CEO, IndusInd Bank, said the base rate is likely to be between 7% and 8%. "Public sector banks will place their base rate around 7.5%. There may be a variation of 0.5-1% in the base rate."
He expects his bank's base rate to be below 8%. "We will announce our base rate in the afternoon."
July to September will be a learning period for all the banks. Going forward, more frequent changes are expected in the equated monthly installments (EMI) of customers.
Sobti feels the responsiveness to monetary actions will be faster. "The impact on yield will be very minimal."
Over the last 3-6 months, the demand pull from corporates is very high, he added.
RK Bakshi, Executive Director, Bank of Baroda, said that less than 2-3% of the bank's loan book is below 8%. "Public sector undertakings account for 77% of the corporate loan book."
Source http://www.moneycontrol.com/news/business/banks-likely-to-set-base-rate-between-78-indusind_467095.html
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