| BASE RATE - 10.45% p.a. (w.e.f 02nd May 2012) |
How BASE RATE is calculated?
The Base Rate is computed by considering the following parameters
- Bank’s cost of deposit (which is taken as the benchmark).
- Negative carry on maintaining Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio. (CRR)
- Administrative expenses, which cannot be specifically attributed to any particular type of lending, and
- Average expected return on capital employed for supporting the lending activities
The final lending rates have been arrived at by adding borrower specific charges, tenure premium, credit risk premium etc to the Base Rate.
The Base Rate and final lending rates will be reviewed / revised by the Bank at least once in a quarter.