BoB, Dena Bank, BoI raise base rates, BPLRs by 0.5% each

MUMBAI: Lending rate hikes by banks, which began after the Reserve Bank raised repo rate by 0.5 per cent to 7.25 per cent on Tuesday, continued on Thursday with three leading public lenders upping both their base rates and BPLRs.

Bank of Baroda , Bank of India and Dena Bank upped their base and benchmark prime lending rates (BPLRs) by 0.5 per cent each with effect from tomorrow, they said in separate statements here today. Accordingly, BoB's base and BPLR will stand at 10 per cent and 14.25 per cent, respectively.

Dena Bank's base rate has been increased to 9.95 per cent, while its BPLR goes up to 15 per cent with effect from tomorrow.

BoI's base and BPLR will stand at 10 per cent and 14.25 per cent, respectively.

Indian Bank also hiked its rates today, while Canara Bank , Yes Bank , Bank of Maharashtra and Punjab National Bank (PNB) increased their lending rates yesterday.

On Tuesday, IDBI Bank had announced an increase in its lending rates.

The RBI on Tuesday upped short-term lending rate (repo) to combat inflation. It had also raised interest on savings account deposits by 0.5 per cent to 4 per cent.

The moves are expected to push up the cost of funds of banks and hence they have resorted to increasing their lending rates. More lenders are expected to follow suit.

Source: EconomicTimes