The reduction in base rate will boost investment sentiments, according to P Jayarama Bhat, Managing Director of Karnataka Bank Ltd.
A press release by the bank said here on Saturday that the bank has reduced its base rate from 10.50 per cent to 10.25 per cent with effect from June 1.
The said reduction is applicable to the existing loans and also for the future loans. This will enable retail, MSME and export customers among others to avail funds at reduced rates. “As the economy is gaining momentum, the present reduction in base rate would further fuel the investment sentiments and support long-term growth,” Bhat said.