The recent policy rate hike by Reserve Bank of India has triggered rise in lending rates by many lenders. Lenders like Bank of Baroda and HDFC Bank have announced a 50 basis point rise in lending rates.
Bank of Baroda has also increased its deposit rates along with Oriental Bank of Commerce. Lending rates have also been raised by Indian Bank, Indian Overseas Bank (IOB), Bank of India (BoI) and Dena Bank. Interest rates have also been raised by PNB. PSB and Allahabad Bank.
Deposit rates of BoB have seen a 50 bps rise across selected maturities. The 444 days deposit will now attract the depositor an interest of 9.10% till March 2011. Deposits of tenor in the range of 1 year to 443 days will now bear interest of 8.75%. The revised rates are coming to effect from today, February 02, 2011.
Fixed deposit rates of OBC have been raised by 25 bps with the highest interest of 9.25% being paid for the 500 day deposits.
HDFC Bank has raised both BPLR and base rate by 25 bps thereby making it evident that loans would now get costlier by atleast 25 bps for both new and existing customer.
"This is in line with the interest rates in the economy, which have hardened due to an increase in policy rates, inflation and liquidity in the domestic market," HDFC said.
The base rate of Indian Bank has received a 50 bps rise to 9.5% with effect from February 01, 2011. IOB has also raised its base rate from 9% to 9.5%.
Dena Bank's base rate has been raised by 50 bps to 9.45% with effect from today.