Chennai-based public sector bank, IOB do not plan to raise their base rate immediately. Mr. M. Narendra, Chairman and Managing Director, Indian Overseas Bank, told the press that the bank will take a decision on raising its base rate seeing the move from other public sector players after the Monitory Policy Revision which is expected on to be released on May 3rd.
Indian Bank had raised its base rate to 9.5 per cent from February 1, 2011, and the benchmark prime lending rate to 13.75 per cent from February 18, 2011. The bank does not intend to raise its rates in the next couple of days. The rise in base rate would in turn increase the interest rates of all loans, home loans, car loan, personal loan, etc.
This is in the view of the monitory policy revision that is going to come up on May 3rd of 2011. Most banks are waiting to see the RBI’s move to control the inflation. Correspondingly there would definitely be a revision in the base rates of the Public sector banks too. Most of the other banks are therefore waiting for the outcome of the monitory policy revision.