SBI, 2 other banks raise lending rate by 25 bps

New Delhi, Jul 7 (PTI) State Bank of India, along with
two other banks, Thursday raised lending rates by 25 basis
points or 0.25 per cent, making home, auto and commercial
loans more expensive.
The country's largest lender, SBI, has increased the
deposit rates as well by up to 100 basis points, a decision
which would ensure better returns for savers.
Several lenders, including ICICI Bank, Canara bank and
Bank of Baroda, have already increased their lending rates by
25 basis points in response to the rate hike by the Reserve
Bank last month.
While other banks have only raised the lending rates, SBI
is the first bank to announce a hike in both lending and
deposit rates.
Besides SBI, the other two banks which have announced
increase in lending rates are Punjab & Sind Bank and Dhanlaxmi
Bank. While PSB and Dhanlaxmi Bank have increase their rates
with immediate effect, the new rates of SBI would come into
effect from July 11.
SBI has revised the base rate or the minimum lending rate
upwards by 25 basis points (bps), or 0.25 per cent, to 9.50
per cent.
The bank has also raised its benchmark prime lending rate
(BPLR), used to determine floating interest rate loans, have
been increased to 14.25 per cent from 14 per cent.
The interest rates on fixed deposits with a maturity
period of 1-10 years has been fixed at 9.25 per cent. The new
deposit rates would be effective from July 11.
Deposits of up to 90 days would fetch an interest rate of
7 per cent as against 6.25 per cent.

The interest rates for fixed deposits with a maturity
period of 1-10 years would be 9.25 per cent. Current deposits
between 1 year and 554 days earn an interest of 8.25 per cent.
After the increase, the base rate of PSB and Dhanlaxmi
Bank now stands at 10.25 per cent
While the BPLR of PSB now stands at 14.75 per cent, it is
19.25 per cent for private sector lender Dhanlaxmi bank.
"The hike in our base rate and BLPR reflects tight
monetary conditions and is in line with market trends," the
bank's Chief Financial Officer Bipin Kabra said.
Besides, SBI has also decided to waive off the penalty
for premature withdrawal of deposits up to 90 days. For
premature withdrawal of other deposits, it reduced the penalty
to 0.50 per cent from 1 per cent.
The RBI hiked key short-term lending and borrowing rates
by 25 basis points (0.25 per cent) each with immediate effect
to tackle inflation. The short-term lending (repo) rate rose
to 7.5 per cent and the borrowing (reverse repo) rate to 6.5
per cent.
Last week, besides ICICI Bank, other lenders Indian
Overseas Bank, Corporation Bank and Dena Bank also hiked their
base rate by 25 basis points each.