Axis Bank ups loan rates by 5 bps to counter margin pressure

作者:Joan    發表日期:2018-05-21 06:11:27

Axis Bank, country's third private sector lender, has become the first commercial bank to hike lending rates by 5 basis points to 8.30 percent.

The hike comes for the first time in three years signalling an upward turn in interest rate cycle.

Axis Bank has raised lending rates by 5 basis points across all tenures with effect from January 18, the bank said in a filing on the stock exchanges.

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With this, Axis Bank would charge 8.30 percent on loans having one year tenure for new borrowers.

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Other banks could likely follow suit marking the end of easing rate cycle.

Country's largest bank, State bank of India (SBI) is yet to announce any such hike in rates.

The hike in the lending rates comes at a time when the yields on the government securities and corporates bonds have risen sharply.

In December quarter alone the 10-year yield had risen by 67 bps which is likely to result into mark-to-market losses between Rs 15,000 - 25,000 crore for banks.

The hike in lending rates by Axis bank will impact new borrowers while the existing borrowers will continue to have the benefit of lower rates till the end of lock-in period they have fixed with the bank.

Most home loans have a lock-in period of one year from the time the loan is taken and the new rates will be effective at the end of each year.


轉載請註明:Joan 2018-05-21 06:11:27 于 Liberty-熱點資訊 发表

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