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Axis Bank raises base rate by 25 bps
Posted on: 20/Aug/2013 2:08:04 PM
Axis Bank on Monday said it had increased its base rate, or minimum lending rate, by 25 basis points to 10.25 per cent.
In the last couple of weeks, several private lenders have increased lending rates, owing to a rise in their cost of funds. While HDFC Bank increased its base rate by 20 basis points to 9.8 per cent, YES Bank raised its minimum lending rate by 25 basis points to 10.75 per cent.
Earlier, Axis Bank had increased its short-term deposit rates by 50-225 basis points. Following the Reserve Bank of India (RBI)’s first-quarter review of monetary policy on July 30, most private lenders had raised short-term deposit rates. ICICI Bank had raised its deposit rates by 50-75 basis points, while HDFC Bank had announced a 100-basis-point rise in deposit rates.
While RBI had kept the policy rate unchanged in its monetary policy review, its liquidity-tightening measures in the past few weeks have impacted short-term rates.
On July 15, the central bank capped banks’ borrowings under the liquidity adjustment facility and increased the marginal standing facility rate by 200 basis points to 10.25 per cent.
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