BoB hikes PLR by 50 points from May 1

Mumbai, Apr 28 (UNI) Bank of Baroda (BOB) has decided to increase its prime lending rate(PLR) by 50 basis points to 11 per cent from May 1.

This would lead to hike in the loan portfolios of various segments, including home loans, said Bank's CMD A K Khandelwal.

The hike was necessiated following increase in the bank's deposit rates. The short term 90-day deposit rates would be increased by 50 basis point.

However, there would be no change in the agriculture lending rates below Rs two lakhs at the current rate of 8.5 per cent.

There are other banks like Bank of India which are also planning to adjust their interest rates in a move to make deposits more attractive and competitive and this may result in similar increases next week.

''Our Assests&Liabilities Committee (ALCO) would be meeting next week to review the interest rates structure and would take necessary measures'', said Bank of India CMD M Balachandran.

''We may hike the rates if required'', he said and added the decision would be taken after reviewing the cost of our resources.'' The ALCO is expected to meet either on Wednesday or Thursday.

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