The recent policy rate hike by regulator Reserve Bank of India will lead to surge in loan rates by various lenders.
Major lenders like Punjab National Bank, Bank of Baroda (BOB), IDBI Bank and Oriental Bank of Commerce (OBC) have already raised their base rate to 10.75%.
Rise in base rate as well as BPLR is an indicative that retail loans like car loans, home loans, personal loans etc are set to get dearer.
Increase in cost of deposits casting pressure on net interest margins of banks are leading them to increase their loan rates now, observe industry analysts.
PNB's base rate stands at 10.75%, a hike by 75 bps. OBC and BoB have announced a 50 bps hike in the same.