HDFC Bank to peg base rate in 6.75-8.0 per cent range

HDFC Bank, India's second biggest private sector lender, is expected to fix its base rate for lending between 6.75 and 8.0 per cent.

Paresh Sukthankar, executive director of HDFC Bank, said he expected banks to fix their base rate in that range.

Sukthankar, who was speaking to reporters at a media briefing, said HDFC Bank would announce its base rate tomorrow.

"The base rate across banks will reflect lending rates in the market. Lending rates in the market have shown some upward bias in the last few months and the trend is probably expected to continue for the next couple of months as well," he said.

He also said the base rate will not have any major impact on the bank's profitability.

In fact, he said, HDFC expects bank credit to grow a "little faster" in 2010-11 than the 20 per cent growth in 2009-10.