NEWS & ADVICE : FIXED DEPOSITS
J&K Bank raises PLR
By Neelima Shankar
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The affect of the hike in the repo rate on the various policies of banks is taking shape. After various banks had increased their lending and deposit rates, the Jammu and Kashmir Bank become the first bank to raise its prime lending rate (PLR). The bank has increased the rate from 13 per cent to 14 per cent following the announcement made by the Reserve Bank of India on Wednesday to increase the repo rate or a rate at which central bank lends to banks by 25 basis points. Prime lending rate (PLR) is the interest rate that commercial banks charge their most credit-worthy customers.

The bank has communicated its decision to increase the PLR rate to the BSE.

Various other public sector and private banks are expected to follow the suit. In addition to this there is also a possibility of banks increasing their rate for fixed deposits. The RBI announced to increase the rate to squeeze liquidity out of market to check the high rate of inflation.


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