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Bangalore Feb.15 Syndicate Bank on Thursday announced that it has increased its benchmark prime lending rate by 50 basis points to 12.25 per cent per annum.

The increase which would come to effect from February 16, will result in the increase of interest rate by 50 basis points to all the customers of the bank who have credit facilities carrying floating rates of interest, including retail customers of the bank who have availed themselves of housing and personal banking loans, said a bank release.

Our Mumbai Bureau reports: Union Bank of India has hiked its Benchmark Prime Lending Rate (BPLR) by 0.5 percentage point to 12.5 per cent effective February 19. The bank last raised its BPLR on January 1 from 11.5 per cent to 12 per cent.

"The bank has decided on this revision taking into consideration the recent hike in Cash Reserve Ratio and its likely impact on cost of funds with resultant pressure on the spread," said a press release from the bank.

The increase will impact loans with floating interest linked to BPLR. However, the hike will not apply to existing housing loans granted on a floating rate basis, added the release.

Our Chennai Bureau reports: Indian Overseas Bank has spared individual housing and education loans from the upward revision of interest rates. The bank raised its benchmark prime lending rate from 12 per cent to 12.5 per cent, with effect from today. Although, home and education loans are linked to PLR, the bank will not raise the rates for these two categories of loans. "Housing and education are two basic needs and people should not be burdened with higher rates when they borrow for these basic needs," IOB's Chairman and Managing Director, Mr T.S. Narayanasami, told Business Line.

More Stories on : Interest Rates | Public Sector Banks | CRR & Bank Rates

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