Business Daily from THE HINDU group of publications
Thursday, Feb 22, 2007
ePaper
Business Daily from THE HINDU group of publications Thursday, Feb 22, 2007 ePaper |
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Money & Banking
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Interest Rates More banks raise prime lending rates Our Bureau
A statement issued by the bank attributed this revision to hardening of interest rates in the market after recent 50 basis points increase in the cash reserve ratio (CRR) by the Reserve Bank of India (RBI). It, however, said that the BPLR increase would not affect the existing housing loans up to Rs 15 lakh, all existing and new education loans up to Rs 4 lakh and crop loans up to Rs 3 lakh disbursed after April 1, 2006. Oriental Bank of Commerce has increased its benchmark prime lending rate by 75 basis points to 12.5 per cent per annum. This increase would come into effect from Friday. A statement issued by the bank attributed the latest hike in PLR to increase in cost of deposits and recent hike in cash reserve ratio (CRR) coupled with higher provisioning requirement on standard advances under certain segments like real estate, non banking finance companies etc. OBC had last increased its PLR in January by 25 basis points to 11.75 per cent. The bank had increased PLR by 50 basis points in May 2006. The statement issued on Wednesday also said that the latest hike was not applicable to housing loans up to Rs 20 lakhs and education loan up to Rs 4 lakh.
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