The third largest private sector Bank, AXIS Bank has also slashed its base rate by 10 basis points to 9.85 per cent from 9.95%. To compete with its biggest rival ICICI Bank, AXIS has also joined the race of Rate cut. Still ICICI, HDFC and SBI are far ahead from AXIS Bank in this race. The Base Rate of AXIS is higher than 9.70 per cent offered by ICICI Bank, HDFC Bank and SBI.
On June 2, RBI Governor Raghuram Rajan had boosted banks to reduce the lending rates in the Monetary Policy Statement. SBI was the first to cut its base rate. Kotak Mahindra Bank also signed a rate cut.
SBI had cut its base rate by 15 basis points to 9.7 per cent. HDFC Bank also got its foot in the door by slashing the rate to 9.70 per cent last week. Similarly, ICICI Bank slashed its rate by 5 basis points to 9.70 per cent on June 25. Kotak Mahindra Bank also signed a rate cut. The industry is also hoping for a rate cut from RBI in this season of Monsoon.