Dhanlaxmi Bank hikes base rate by 25 bps

Mumbai: South-based Dhanlaxmi Bank today hiked its minimum rate of lending or the base rate by 25 basis points to 10.25 per cent, in line with peers in the lending industry.

Loans under the older Benchmark Prime Lending Rate (BPLR) regime, which preceded the present base rate, also got dearer as the bank hiked the BPLR by 25 basis points to 19.25 per cent, it said in a release.

"The hike in our base rate and BLPR reflects tight monetary conditions and is in line with market trends," the bank's Chief Financial Officer Bipin Kabra said.

Other lenders like biggest private bank ICICI Bank have also increased lending rates in the last fortnight while the country's biggest lender State Bank of India is expected to take a decision on whether to hike or not today.

SBI's Asset Liability Committee -- which decides on rate hikes -- is scheduled to meet this evening.

The Reserve Bank has hiked its key rates 10 times or 250 basis points since March 2010 in order to tame the inflation, which stood at 9.06 per cent in May 2011. The last hike of 25 basis points was done in the mid-quarter announcement of the monetary policy on June 16.

Source: Financial Express