This is for information for all our customers that the Bank will be following a new system of fixing rate of interest for Loans/Credit facilities, viz., Base Rate System w.e.f 1st July, 2010, as mandated by RBI vide its Circular No.DBOD.No.Dir.BC88/13.03.00/2009 dated 9th April, 2010 and subsequent clarifications issued vide Circular dated 6th May, 2010 and 24th June, 2010.

The Base Rate System will replace the existing Bench Mark Prime Lending Rate (BPLR) System. The Bank has fixed its Base Rate w.e.f 1st July, 2010 at 8.25% p.a till further review.

The Base Rate System will not be applicable to:

·  Advances under DRI Scheme.

·  Loans against Bank's own deposits.

·  Loans to Staff

·  Export Credit facilities which attract subvention as per RBI Circular dated 23rd April, 2010.

·  In case of Crop Loan upto 3.00 lacs, for which subvention is available, Bank is required to charge interest rate as stipulated by the Government.

·  Other Loan products as may be specified by RBI from time to time.

The actual rate applicable to various categories of Advances, will be a sum of Base Rate, Credit Risk Premium (including products/customer specific charges) and tenor premium (In case of Term facilities) as may be decided by Bank from time to time.

All new loans and advances sanctioned from 1st July, 2010 onwards, will attract Interest Rate as per new system to be determined with reference to Base Rate. In case of existing customers enjoying credit facilities, linked with BPLR, the interest rate will be switched over to Base Rate System at the time of next Renewal/Review, reset date, wherever stipulated in case of Term Loans.However, existing customers may exercise ONE TIME option to switch over to Base Rate System.

For further details, customers are requested to contact home Branch where credit facilities are enjoyed by them.