HDFC Bank fixes minimum lending rate at 7.25 percent
By siliconindia   |   Tuesday, 06 July 2010, 21:25 IST
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Mumbai: HDFC Bank, an Indian private sector lender, has fixed its minimum lending rate at 7.25 percent. Its 25 basis points lower than market leader State Bank of India's rate. Other than HDFC Bank, Dhanalakshmi Bank and DBS Bank have also fixed the rate at 7 percent each, below that of SBI. SBI has fixed the minimum lending rate or base rate at 7.5 percent last week. The bank does not expect any direct impact on its consumer loans as most of its consumer loans are fixed rate loans, claims Paresh Sukthankar, HDFC Bank's Executive Director. While fixing the rate, the cost of two-three short-term maturity deposits has been taken into account by the bank as the main parameter. Adding to it, there may be rise in the rates of short-term corporate loans also, said Sukthankar. With a view to bring about more transparency in the lending regime, The Reserve Bank of India (RBI) seeks to make banks stick to a declared lending rate, below which no bank can lend. The Reserve Bank of India (RBI) has directed banks to come out with base rate or the minimum lending rate from July 1.

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