Public sector lender, Indian Bank has announced rise in lending rates by as much as 25 basis points with effect from February 18, 2011.
The benchmark prime lending rate (BPLR) of the bank now stands at 13.75% as against 13.5% earlier.
Following this hike, all loans inclusive of car as well as home loans would get dearer by atleast 25 bps.
The move by the bank follows many lenders in the banking space who have already announced a rise in both deposit as well as lending rates. The largest lender of the country, State Bank of India has recently hiked interest rates on both deposits as well as advances.
The interest rate hike has been triggered by the policy rate hike by Reserve Bank of India in the monetary policy review on January 25.