Axis Bank raises base rate 25 bps

Axis Bank,the country’s third largest private sector bank,raised both its base and benchmark prime lending rate by 25 basis point with effect from July 5. The bank’s revised base rate is at 9.75% while the BPLR is at 17.5%. The bank has,however,kept its existing deposit rates intact.

After State Bank of India and ICICI Bank more banks are now gearing up to hike rates. Second largest lender in the country,Punjab National Bank,is likely to take a call on its interest rates shortly. KR Kamath,CMD,PNB,said,“Our Alco will meet shortly to take a view on the rates.”

Bank of Baroda (BoB) is likely to increase its lending rates by 25 basis points,when its Alco meets within a day or two said RK Bakshi,executive director,BoB. BoB may however keep its deposit rates intact except for only one slab,said Bakshi.

MV Nair,CMD,Union Bank of India is of the view that the rates are set to go up. Nair said that bank’s Alco will be meeting on Saturday to take a call on base rate only. “We are not looking at any revision in deposit rates as of now,” added Nair.