The second largest private sector lender of the country, HDFC Bank has raised its base rate by 25 basis points. The base rate of the bank now stands at 7.50%.
The bank has raised its base rate following the rise in repo and reverse repo rates by the Reserve Bank of India in the second quarter review of monetary policy. Repo rate, the rate at which RBI lends money to commercial banks has seen a 125 basis point rise since mid March.
The bank has also raised its deposit rates by 50 basis points.
The bank's steps follow many other lenders like Punjab National Bank, Axis Bank, Karur Vysya Bank, Kotak Mahindra Bank, Bank of Baroda which have raised their base rates too.