When a clear picture on the base rate emerged on Thursday, Tamil Nadu?s old generation private banks are still sticking to the old system. Refraining from going in for ?very competitive? rate, they opted for conservative range, from 8.5% to 8.75%. While the Karur Vysya Bank has gone for a base rate at 8.5%, Tamilnad Mercantile Bank (TMB) has opted for a base rate of 8.5%. ?The base rate is subject to review at least once in a quarter,? said G Nagamal Reddy, MD & CEO, TMB.
Lakshmi Vilas Bank (LVB) has also set base rate at 8.75% while City Union Bank (CUB) fixed the rate at 8.5%.
?It may be that the private banks in Tamil Nadu would not want to get into over-exposure,? according to an analyst.