SBI ups interest rates by 25 bp

Written by: Pti
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New Delhi, Feb 11 (PTI) The country''s largest lenderState Bank of India today raised lending and deposit rates onselect maturities by 25 basis points in response to policyrate hike announced by Reserve Bank last month.

SBI revised the base rate or the minimum lending rate25 basis points to 8.25 per cent, the bank said in astatement.

With the increase in base rate, all kinds of loansexcluding housing and auto loans would be dearer by at least25 basis points (0.25 per cent).

At the same time, SBI''s Benchmark Prime Lending Rate(BPLR) for the existing customers has been increased by 25basis points to 13 per cent.

Besides, the bank has also increased fixed depositrates on two select maturities by 25 basis points.

Both 555 days and 1,000 days fixed deposits wouldattract 9.25 per cent from existing 9 per cent. The new rateswould be effective from February 14.

Banks have been raising interest rates following a 0.25percentage point hike in short-term lending (repo) andborrowing (reverse repo) rates announced by the Reserve Bankin its third quarterly review of monetary policy last month.

More than a dozen banks including Punjab National Bank,Bank of Baroda, Union Bank of India and Indian Overseas Bankhas already revised interest rates since the third quarterlyreview of the monetary policy on January 25.

While the higher deposit rates would provide betterreturns to savers, rise in lending rate would increase theEMIs for auto and home loan borrowers. Besides, corporateloans too would become expensive.

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