Allahabad Bank fixes Base Rate at 8%

The Reserve Bank of India vide its Circular No. RBI/2009-10/390/DBOD no. DPR/BC/88/13.03.00/2009-10 dated 9.4.2010 has advised the banks for introduction of “ Base Rate System” in place of Bank’s Prime Lending Rate System. Base Rate System is to be made applicable from 01.07.2010 for all new loans and those old loans that come up for renewal except certain exemptions as permitted by RBI.

Accordingly, Allahabad Bank has fixed the Base Rate at 8%. The Base Rate and the spread thereon will be reviewed by the Bank at least once in a quarter.

Existing loans based on the BPLR system may run till their maturity. In case existing borrowers want to switch to the new system of Base Rate, before expiry of the existing contracts, an option will be given to them, on mutually agreed terms. No fees will be charged for such switch over.

Publicity Department,
Head Office
29th June, 2010.