Indian Bank hikes lending rate by 25 basis points

MUMBAI: State-owned lender Indian Bank today hiked lending rate for its existing customers by 25 basis points to 13.75 per cent in line with other banks.

The bank has revised its Benchmark Prime Lending Rate (BPLR) from existing rate of 13.5 per cent to 13.75 per cent, Indian Bank informed the Bombay Stock Exchange in a filing.

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

Last week, the 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 the 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 each announced by the RBI in its third quarterly review of monetary policy last month.

Source: Economic Times