Some of India’s private banks upped the ante on Wednesday. H D F C Bank and others announced new base rates. HDFC Bank’s rate is 7.25%. And another private sector lender, Axis Bank, announced a rate of 7.5%.
On Tuesday, State Bank of India announced a base rate of 7.5%. Other public sector lenders pegged their rates at 8-8.5%. Base rates are the minimum rates at which banks can lend. A new RBI regime that requires publicly stated base rates come into effect 1 July.
Kotak Mahindra has found a Japanese investor. Sumitomo Mitsui Financial Group will pick up a 4.5% stake in Kotak for $296 million. It says the deal will give it the cash it needs for future operations and acquisitions. Sumitomo, meanwhile, wants to expand in Asia to make up for slow growth at home.
Where you are could decide how much you pay at the pump. Government-run oil companies are looking at a “dynamic pricing mode”. That will allow them to set different prices for their products in various regions. Last Friday the government freed up petrol prices and increased those of other fuels like diesel and kerosene. .