The Hindu Business Line : More banks hike lending rates

Mumbai, Aug 7 Dena Bank has hiked benchmark prime lending rate by 75 basis points to 14.25 per cent from 13.5 per cent, with immediate effect. However, the bank has not increased interest rates for existing housing loans under Dena Niwas Scheme upto Rs 30 lakh and also all existing education loans under Dena Vidyalaxmi Scheme, said a press release from the bank.

The interest rates on new home loans above Rs 30 lakh and on new education loans above Rs 4 lakh will increase by 50 basis points.

The bank also increased the interest rate on domestic term deposits by 25 to 100 basis points for various maturities from 91 days to less than five years, with immediate effect. Deposits of maturity of one year to less than three years will now earn interest rate of 9.5 per cent, said a press release from the bank.

Bank of India also hiked its BPLR by 75 basis points to 14 per cent. The revised rates will apply to corporate loans and the bank will take a decision regarding priority and retail loans within a couple of days, said an official from the bank.

Our Bangalore Bureau reports: Canara Bank has raised its benchmark prime lending rate by 75 basis points to 14 per cent from 13.25 per cent.

The bank in a statement said this increase would not be applicable to its existing housing, auto and educational loans. It has also decided not to effect the upward revision in interest rates for fresh individual housing loans upto Rs 30 lakhs.

Our Hyderabad Bureau reports: Andhra Bank has increased the Benchmark Prime Lending Rate by 75 basis points. With this, the BMPLR now stands at 14.00 per cent as against the existing 13.25 per cent. The revised rate would be effective from August 7. It would be applicable for all loans and advances (exiting and new) which are linked to BMPLR including Sub-BMPLR and finer rates of interest, according to a release.

Our Mangalore Bureau reports: Corporation Bank will increase its benchmark advance rate by 50 basis points with effect from August 11. The bank informed BSE on Thursday that in order to cope with the impact of increase in the cost of funds, the Benchmark Advance Rate (COBAR) has been revised upward by 50 basis points from 13.50 per cent per annum to 14 per cent . However, housing loans with sanctioned limits up to Rs 30 lakh, agriculture loans and educational loans, are kept outside the purview of the present upward revision in COBAR. COBAR was last increased on July 1 by 50 basis points. The bank had increased it from 13 per cent to 13.5 per cent then.