Bank of Maharashtra ups lending rates by 25 bps

MUMBAI: The state-run Bank of Maharashtra on Thursday revised upwards its base and lending rates by 0.25 percent each to 10.25 and to 14.50 per cent respectively.

"The new rates will be effective from Saturday," the bank said in a release here.

The MahaBank's base rate or the minimum rate below which it cannot lend to anyone, was 10 per cent prior to the revision, while its prime lending rate was hovering at 14.25 per cent, the statement noted.

Following the Reserve Bank's tight monetary policy to tame inflation, the key policy rates have gone by a record 10 times since March 2010 to 7.5 and 6.5 per cent as of June 16.

With the provisional core inflation number further rising to 9.44 per cent for June, up from 9.06 per cent in May, driven by higher prices of fuel and manufactured goods, analysts are expecting another round of rate hike by the central bank on July 26 at the first quarter monetary policy review.

Source: EconomicTimes