Earlier in the month, even in the mid quarter review of RBI the policy rate was still the same however the minimum rate of lending or base rate of Canara Bank went up today to 10.20 percent, a hike of 0.25 percent.
After the official policy announcement made by the RBI, Canara Bank which is stated owned was the first bank to hike their base rate. This move will also make auto, home and various other loans more expensive. In the recent filing done by Canara Bank at BSE, the base rate was modified to 10.20 percent from 9.95 percent.
It also stated that the prime lending rate benchmark has been aligned from 14.20 percent to 14.45 percent. Effective January 1, the new rates would come to light, as well as based on the market situation; the loaning rate has been aligned by the bank.
The policy rates of the RBI were still the same as per the review that was made during the mid quarter.