Having effected a 25 basis points reduction in base rate just a month ago (on September 1), Kumbakonam-headquartered City Union Bank will take a call on any further reduction in rates around mid-October, its Chief Executive N Kamakodi told BusinessLine .
The bank’s base rate now stands at 10.50 per cent.
He said heavy pressure from various quarters compelled the bank to effect the cut then.
“This time around, the waiting time was longer and banks had more time to prepare for a reduction,” he said.
Tamilnad Mercantile Bank, on the other hand, has taken cognisance of the banking regulator’s announcement. “We have not effected a cut in the recent past. We brought the base rate down to 10.60 per cent from 10.75 per cent about two months back. The Asset-Liability Committee will meet next week and take a call on this,” TMB’s Managing Director Upendra Kamath said.
For TMB, borrowing under repo is “very minimal”, observed Kamath.