Bank of Maharashtra, Pune-based public sector lender is likely to hike its base rate by 25 basis points (bps) from October 1, 2011. The hike in base rate reflects tight monetary conditions and is in line with the hike in key interest rates by Reserve Bank of India (RBI).
The bank will take a decision on September 25, 2011 in its asset- liability committee meeting and it's likely that the base rate will be increased by 25 basis points from October 1. The bank had not increased its base rate after the previous RBI interest rate hike on July 26, 2011. At present the bank's base rate stands at 10.5%.
The entity eyed to register credit growth of 18% in the current financial year on the back of hardening interest rates. Earlier, it aimed for credit growth of around 25% for this fiscal. However, that has been moderated to 18% due to the rise in interest rates and slow uptick in advances growth in the corporate and infrastructure sector.
