Mumbai, Feb 7 (PTI) Public sector lender IDBI Banktoday increased its minimum rate of lending or the base rateby 0.5 per cent to 9.50 per cent and benchmark prime lendingrate (BPLR) by 0.25 per cent to 14 per cent, a release issuedby the bank said.
Private sector lender DCB has also announced an upwardrevision in base rate to 9 per cent from 8.5 per cent and theBPLR by 50 basis points to 16.25 per cent, according to apress release.The base rate system replaced the BPLR last July tomake lending more transparent. Some older loans given underthe BPLR are yet to migrate on to the base rate system.
IDBI Bank''s move follows others like Dena Bank, Bankof India, Union Bank of India, Indian Overseas Bank, SyndicateBank which have also upped their base rate following theReserve Bank''s January 25 announcement to hike its keyrates--the repo at which it lends and the reverse repo atwhich it collects extra cash, by 0.25 per cent each.
The lending rate hikes were prompted by increase incost of funds, where deposit rates have been increased up to125 basis points, and keeping in view the market conditions,IDBI Bank said.
Meanwhile, IDBI Bank has also increased its interestoffering for term deposits by up to 1.25 per cent depending onmaturities. Under the revised rate structure, a 15-45-daydeposit up to Rs 1 crore will fetch an interest of 4.50 percent per annum, up from earlier 3.25 per cent, the bankstatement said.