By Accommodation Times News Services
Axis Bank the third largest private sector lender of India, reduced its base rate by 10 basis points (bps) to 10.15 per cent on the back of a decline in cost of funds, leading reduction of 0.10 per cent on home loan rates and auto loan interest rates. This is a good news for home buyers for this festival season.
Sidharth Rath, president for Treasury, Business Banking and Capital markets at Axis Bank, said, “The bank has reduced the base rate by 10 bps as the cost of fund has eased due to softening of interest rates based on improving liquidity and other macroeconomic developments.”
Reserve Bank of India has kept its key policy rate unchanged for the last four policy reviews , and has signed that it would refrain from cutting interest rates until it is confident consumer inflation can be reduced to a target of 6 percent by January 2016.
The base rate of large lenders such as State Bank of India, ICICI Bank and HDFC Bank is 10 per cent, while that of most public-sector banks is 10.25 per cent.