#1
20th December 2015, 08:42 AM
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BPLR of ING Vysya Bank
Can you tell me in detail about the Benchmark Price Lending Rate (BPLR) and Base Rates of ING Vysya Bank?
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#2
20th December 2015, 08:43 AM
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Re: BPLR of ING Vysya Bank
In 2014, Kotak Bank acquired ING Vysya Bank for a deal valued at Rs.15000 crore (US$2.2 billion). With this merger, the total human resource count jump to almost 40,000 heads and the count of branch reached at 1261. Post the merger, ING Group which controlled ING Vysya Bank own 7% share in Kotak Mahindra Bank. BPLR and Base Rates The base rate acts as a minimum interest rate of a bank below which it cannot lend. The Base Rate is named as ‘ING Vysya Base Rate’ in ING Vysya Bank. The base rate makes pricing more transparent as banks are not permitted to lend below base rate and also base rate has to be disclosed publicly. Base Rate is to be reviewed by the respective banks at least on quarterly basis and the same is to be disclosed publicly. The 'Benchmark PLR' of the Bank is revised downward from the current 18.50% to 18.25% with effect from October 05, 2015 Base Rate of Kotak Mahindra Bank Ltd with effect from October 05, 2015: 9.50% (In-house benchmark rate linked to which loans are priced) Advantages of Base Rate: The Base Rate system is basically aimed at enhancing transparency in lending rates of banks and enabling better assessment of transmission of monetary policy The banks have been asked to review their Base Rates every quarter. Banks are required to exhibit the information on their Base Rate at all branches and also on their websites. |
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