The banking industry is all set to move ver to the base rate regime from personal loan July 2010. With that aim, all banks are busy computing their corresponding base rates on which they would base their pricing for
It is believed that the industry average for base rate would lie between 8-9%. But few banking giants such as SBI, HDFC Bank and others such as Kotak Mahindra Bank are eager to build a competitive state by targeting a more aggressive rate of less than 8%.
Sources say that SBI is setting a rate anywhere between 7-8.5%. HDFC Bank wants a target of 6.5%, and Kotak Mahindra Bank is shooting for 6.5-7%.
Many banks are believed to be aiming their base rate based on the rate fixed by SBI.
Axis Bank wants to set its base rate between 8-9% while Punjab National Bank is targeting a base rate over 8%. Dena Bank and Bank of India are anticipating their rates to exceed 8%.
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