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Our Bureau

Mumbai, July 30 Banks have started hiking lending rates, following the 50-basis point hike in repo and 25-basis point hike in CRR by the Reserve Bank of India.

Among the first to hike lending rates was Axis Bank, which hiked its benchmark prime lending rate by 0.5 percentage point to 15.75 per cent from 15.25 per cent.

The decision to hike the BPLR was to protect the margins, said Mr P. Mukherjee, President, Treasury Axis Bank. It will result in an upward revision in the rates of corporate loans. Bulk of the corporate loans is linked to the BPLR, he added.

Rates on retail advances such as housing loans, auto loans and personal loans will remain unchanged as of now, he said.

On deposit rates, Mr Mukherjee said that the bank constantly reviews the situation and no decision on hiking deposit rates has been taken yet.

More Stories on : Interest Rates | Private Banks

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