SBT, Allahabad Bank raise lending rates by up to 50 basis pts

MUMBAI: Two public sector lenders, State Bank of Travancore (SBT) and Allahabad Bank, today announced increasing their lending rates by up to 50 basis points.

SBT informed the Bombay Stock Exchange that the bank has raised the base rate from 8.5 per cent to 9 per cent.

With the increase in base rate, all kinds of fresh loans including housing, auto and education, will become dearer by at least 50 basis points, or 0.5 per cent.

At the same time, the bank also increased the Benchmark Prime Lending Rate (BPLR) for existing customers by 25 basis points to 13.75 per cent.

The new rates have been made effective starting February 16, 2011, SBT said.

Kolkata-based Allahabad Bank has also raised the BPLR to 13.75 per cent from 13.50 per cent effective February 24.

Source: EconomicTimes