Lending majors State Bank of India as well as ICICI Bank have announced having raised their lending rates finally.
SBI has announced a 50 bps rise in its base rate as well as benchmark prime lending rate (BPLR). The base rate of the bank stands at 10% while BPLR stands at 14.75%.
The revised rates have come into effect from August 13, 2011.
"We have been very sluggish in raising our lending rates. However, now we have been left with no choice but to raise the rates as our liabilities have got re-priced at a higher rate. We have given a net interest margin guidance of 3.5 per cent for this financial year and we will do all we can to protect the margin," said Mr Diwakar Gupta, Managing Director, State Bank of India.
On the other hand, ICICI Bank has also raised its lending rates by 50 bps. The base rate of the bank is set at 10% while BPLR stands at 18.75%.
SBI has also revised interest rate of only one deposit having tenor of 180-240 days to 7%, a 50 bps hike.