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IDBI Bank loans to become cheaper

Posted on Jan 30, 04:02PM | IBNS

Mumbai, Jan 30 : IDBI Bank, a public sector universal bank, has announced that its loans, linked to Base Rate/BPLR, will become cheaper following a 25 bps reduction in its Base Rate to 10.25pc with effect from Feb 1.

IDBI Bank said it has taken this pro-active step, keeping in view the policy measures announced by the Reserve Bank of India (RBI) in its 3rd quarter review of Monetary Policy on Tuesday.

"The reduction in interest rate is expected to positively impact loan growth; both in the retail consumer segment, as also revitalize fixed capital formation through higher corporate sector lending, thereby supporting the growth impulses in the economy," said the bank.

The bank has also decided to reduce the Retail Term Deposit Rates in select buckets by 25 bps with effect from Feb 1.

IDBI Bank had an aggregate balance sheet size of Rs. 2,73,199 crore and total business of Rs 3,57,582 crore as on December 31, 2012.

IDBI Bank's operations during the 9 month period ended December 31, 2012 resulted in a net profit of Rs. 1328 crore.

The bank's operations during the last full financial year (2011-12) had yielded a net profit of Rs. 2032 crore.