Money & Banking

Kotak Bank ups base rate by 25 bps to 10%

Our Bureau Mumbai | Updated on March 12, 2018 Published on August 12, 2013

Kotak Mahindra Bank increased its base rate or the minimum lending rate by 25 basis points to 10 per cent. This revision will be effective from August 13, 2013.

All categories of loans (other than exceptions permitted by RBI) will henceforth be priced with reference to the revised base rate, the bank informed the Bombay Stock Exchange.

After Yes bank and HDFC Bank, Kotak is the third bank to hike its lending rates after the Reserve Bank of India announced liquidity tightening measures last month.

In July end, indicating a likely hike in the base rate, Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank, had said, “The RBI measures will definitely impact our margins. I would be lying to say they are not significant. However, our asset liability committee will meet in the next week or so and decide. If other banks raise rates we cannot be the only one not to go in for a hike.”

Banks have moved to hike lending and short term deposit rates after they felt their margins would come under pressure due to the RBI measures.

Published on August 12, 2013
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