The Hindu Business Line : Bank of Baroda hikes lending rate to 13.25%

Heading north
SBI may take decision soon on increase in rate
Major pvt banks have hiked advance rates
RBI upped CRR to 6.50 pc, repo rate to 7.75 pc

Mumbai April 5 Public sector banks are set to hike lending rates, with Bank of Baroda being the first public sector bank to mark up its prime lending rate by 75 basis points to 13.25 per cent per annum (12.5 per cent) with immediate effect.

The move follows the RBI move to mark up CRR by 50 basis points to 6.50 per cent and repo rate by 25 basis points to 7.75 per cent.

"Interest rates on home loans have increased by 50 basis points. For educational loans of more than Rs 4 lakh, the rate has been increased by 50 basis points," said a Bank of Baroda release.

Other public sector banks have not yet announced a hike in their PLRs but according to bankers, a rate hike of 50-75 basis points is inevitable.

State Bank of India held its Asset Liability Committee meeting late on Thursday evening and is likely to take a decision soon.

The bank would require the approval of its board for going ahead with increase in the cost of advances.

A senior official said that a rate hike was likely but the quantum is yet to be decided.

SBI's prime lending rate is currently 12.25 per cent.

Union Bank of India will hold its Asset Liability Committee meeting on Saturday, said an official.

ICICI Bank has already hiked its benchmark advance rate to 15.75 per cent, while HDFC Bank has pushed up its PLR to 15 per cent.

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

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