The largest lender of the country, State Bank of India has announced hike in both lending as well as deposit rates by as much as 25 basis points across selected maturities.
The base rate of the bank has been raised by 25 basis points to 8.25%. This implies that all loans are expected to get dearer by 25 bps now.
The bank has also increased its benchmark prime lending rate (BPLR) to 13%.
Also, the bank has raised interest rates on fixed deposits by 25 basis points.
Interest rates on both 555 and 1000 days deposits would now be 9.25%. These rates would come into effect from today, February 14, 2011.
The recent policy rate hike by Reserve Bank of India has triggered this wave of interest rate hike by banks.
So far many banks like Punjab National Bank, Bank of Baroda, Union Bank of India and Indian Overseas Bank have revised interest rates.