Public sector lender Vijaya Bank on Friday announced that it has cut its base rate by 15 basis points to 9.85%.
The bank’s statement on the Bombay Stock Exchange said its asset and liability committee has approved the reduction of base rate by 15 bps from 10% per annum to 9.85% per annum with effect from September 4.
A few days back, private sector lender HDFC Bank had reduced its base rate by 35 basis points to 9.35% making it the lowest in the banking system.
Recently, Canara Bank had also reduced its base rate by 10 basis points to 9.90%.
Vijaya Bank’s managing director and chief executive officer Kishore Kumar Sansi told a business news channel that setting the base rate based on the marginal cost of funding will hit the net interest margins (NIMs) considerably.