Bank of Maharashtra, State Bank of Mysore raise lending rates by 25 bps

MUMBAI: Two state-owned lender-- Bank of Maharashtra and State Bank of Mysore hiked lending rate by 25 basis points in line with other lenders.

Bank of Maharashtra raised the Benchmark Prime Lending Rate (BPLR) by 25 basis points to 13.75 per cent effective yesterday, the bank informed the Bombay Stock Exchange.

This will make all kind of existing loans, including housing and auto loan expensive by atleast 25 basis points.

Besides, State Bank of Mysore has increased its Base Rate or the minimum lending by 25 basis points from 8.5 per cent to 8.75 per cent. The new rate would be effective from February 14.

Country's largest lender State Bank of India raised both lending and deposit rates on select maturities by 25 basis points in response to policy rate hike announced by Reserve Bank on January 25.

Banks have been raising interest rates following a 0.25 percentage point hike in short-term lending (repo) and borrowing (reverse repo) rates announced by the Reserve Bank in its third quarterly review of monetary policy last month.

More than a dozen banks, including Punjab National Bank , Bank of Baroda , Union Bank of India and Indian Overseas Bank has already revised interest rates since January.

By-Economic Times