Kotak Mahindra Bank has revised its base rate by 15 basis points (bps) from 10 per cent to 9.85 per cent with effect from Thursday. With this, home loan rates will come down.
The bank follows other private and public sector banks which cut their base rate. ICICI Bank, State Bank of India, Axis Bank and HDFC Bank had cut their base rate last week, after the Reserve Bank of India (RBI)’s bi-monthly monetary policy statement.
In its monetary policy statement, RBI said the transmission of policy rates to lending rates has not taken place so far despite weak credit off-take and the frontloading of two rate cuts. “With little transmission, and the possibility that incoming data will provide more clarity on the balance of risks on inflation, the Reserve Bank will maintain status quo in its monetary policy stance in this review.” it had said.