Close on the heels of the decision taken by Jammu and Kashmir Bank, the Housing Development Finance Corporation Limited (HDFC) Bank has followed suit and has increased its benchmark prime lending rate (BPLR) by 0.25 per cent. Prime lending rate (PLR) is the interest rate that commercial banks charge their most credit-worthy customers. The new PLR is 15.25 per cent.
On 19th June, J&K Bank had increased its PLR by 1 percent from 13 to 14 percent.
An HDFC bank spokesperson said that the hike will come into effect from June 18.
This move had been preceded by a couple of banks such as J&K Bank and Yes Bank, which have already increased their prime lending rates following the 0.25 per cent hike in the repo rate affected by the Reserve Bank of India recently.
However, not all banks have taken this step. Even though, the above mentioned banks have decided to increase their interest rates, other banks like, State Bank of India have decided against hiking their interest rates. The next few days would see many banks making a call on their interest rates.