All banks are busy these days deciding on their base rates and at the same time a check on the rates set by their competitors. HDFC Bank , the country’s second largest private sector lender has projected that base rate for all banks would lie in the range of 6.75% to 8%.

According to Paresh Sukthankar, executive director of HDFC Bank, the new rate implementation should not bring much effect into the profitability of banks.

The bank expects credit growth in 2010/11 to grow "little faster" than the sector's 20 percent growth, Sukthankar said.

According to RBI data, bank credit in India has grown by an annual 19.1 percent in early June, from a low of 9.7 percent in October and 16.7 percent at end-March.