For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Andhra Bank hikes base lending rate

|
Andhra Bank hikes base lending rate
Andhra Bank has hiked its base lending rate to 10.25 per cent, with effect from 19th August 2013. The base lending rate earlier was 10 per cent. A number of banks have hiked their lending rates following a series of measures announced by the RBI to tighten liquidity.
 

The RBI recently hiked the MSF for banks to drain liquidity and prevent the rupee from sliding.

Under the MSF banks were borrowing from the RBI at repo rate, plus 1 per cent, which effectively meant 8.25 per cent. But, with effect from July 17, banks are borrowing at 10.25 per cent.

In other significant move the RBI also fixed the limit for borrowing at 1% of the of the Net Demand and Time Liabilities (NDTL) of the banking system, reckoned as Rs.75,000 crore for this purpose. The allocation to individual banks will be made in proportion to their bids, subject to the overall ceiling. This change in LAF came into effect from July 17, 2013.

GoodReturns.in

Read more about: andhra bank
Story first published: Saturday, August 17, 2013, 9:53 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Find IFSC

We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more