Bank of Baroda reduces Basic Interest Ratio!
Posted on: 10/Jul/2015 5:44:58 PM - No. of views : (2347)
One of the Nationalised Banks, Bank of Baroda, has reduced the Base Interest ratio from 10% to 9.90%. It has also reduced the main interest rates for loans by 0.10% from 14.25% to 14.15%.
This will be effective from 13th July.
Reserve Bank of India announced reduction REPO rate on 2nd March by 0.25%.
State bank of India, ICICI Bank, HDFC Bank, and Kotak Mahindra bank followed this by announcing reduction in the interest rates.
Bank of Baroda is the latest to join.
Citibank also has reduced its basic interest ratio by 0.15% to 9.35%.
Presently, there is a stalemate situation in the loans extended by the banks unprecedented in the last 10 years.
As on 29th May, the amount of loans extended by the banks has increased by 9.8%.
At the same time, the deposits collected have also increased by 11.5%.
As per the measures on reform activities in the 2nd half of the year (from October to March), Banks expect more demand for loans.
Reserve Bank Of India has reduced the short term loans interest ratio by 0.75% to 7.5 %.
However, the banks have reduced the basic interest ration only by 0.35% to 0.40%.
