After the monetary policy review Vijaya bank is the first one to raise its lending rates. The bank has increased the rates by 0.50%, earlier the rates were 10.20% now the new rates are 10.25%. Although RBI has maintained the same rates.
The other leading banks like ICICI, SBI have a base rate of 10%. RBI limited bank access to the cheaper funding through repo to 0.25% of their deposits from 0.5% earlier. Banks have reported that they expect liquidity to ease around mid-April after some of the money raised by the government through taxes returns to the banking system.