ING Vysya Bank raises lending rates by 25 bps

NEW DELHI: Private sector ING Vysya Bank on Friday increased its lending rates by 25 basis points, making all kinds of its loans expensive.

The bank raised base rate or the minimum lending rate by 25 basis points to 10.45 per cent from existing 10.20 per cent, ING Vysya Bank said in a statement.

At the same time, the benchmark prime lending rate of the bank has also been raised by 25 basis points to 19 per cent from 18.75 per cent, it said.

Home loan reference rate has also been increased by 25 basis points to 19.50 per cent.

The new rates will be effective from October 1, it said. It is expected that other banks would follow suit since the Reserve Bank on September 16 raised policy rate by 25 basis points. RBI has raised repo and reverse repo rates 12 times in last 18 months in order to contain inflation which is hovering around 10 per cent.

As a result of these rate hikes, banks have increased their key lending rates in order to pass on the increased borrowing costs to end-users.

Following mid-quarterly policy review, State Bank of Travancore and Dhanalaxmi Bank increased their base rates by 25 basis points and 50 basis points, respectively.

Source: Economic Times