The largest lender of the country, State Bank of India has announced an increase in its base rate as well as benchmark prime lending rate (BPLR) by as much as 75 bps.
Also deposit rates for the short term maturities (upto six months) have been upped by as much as 225 bps.
The new rates are to come into effect from tomorrow, May 12, 2011.
The base rate of the bank would stand at 9.25% while BPLR would be 14%.
The highest rise in fixed deposit rates has been in the tenor of 7 to 14 days, where the interest rates have seen a 225bps rise to 6.25% as against 4% earlier.
The increase has however still left the benchmark lending rates of SBI, the lowest in the industry. The major reason accountable for this is the huge current and savings account (CASA) deposits of the bank.