Deposit as well as lending rates have been raised by public sector lender, IDBI Bank by 50 basis points. The interest rate hike comes after the recent policy rate hike by Reserve Bank of India in the monetary policy review.
High value housing loans will also attract higher interest rates following this move by the bank.
According to a senior official of the bank, deposit rates have been raised in the range of 10-50 bps across different maturities.
He added that the benchmark prime lending rate (BPLR) has also been raised by 25 bps.
With this hike, the home, auto and corporate loans of existing borrowers will see atleast a 0.25% rise.
Home loans of Rs 75 lakh and above will also have interest rates raised by 25 bps.
All the new rates will be effective from November 4, the official added.
According to ICICI Bank Managing Director Chanda Kochhar, "There will be no immediate increase in interest rates after the (RBI) rate hike... There is an upward bias on interest rates which is due to a combination of many things, not just the (RBI) rate hike."