Mumbai, Aug. 24
State Bank of India's board, which met on Thursday, ratified the hike in the Prime Lending Rate (PLR) by 25 basis points from 10.75 per cent to 11 per cent, said Mr T.S. Bhattacharya, Managing Director.
SBI had announced the rate hike on August 1, but had decided to discuss it in the board meeting, after the Finance Minister, Mr P. Chidambaram, asked public sector banks not to go ahead with their rate hikes until their boards approved it.
The hike in interest rates will not be applicable to home loans up to Rs 15 lakh, as these are within the priority sector, said Mr Bhattacharya.
All other floating rates linked to the PLR and home loans above Rs 15 lakh will go up, he said.
Speaking to reporters yesterday, Chairman, Mr O.P. Bhatt, had said that the bank's executive committee had approved the hike earlier this month. This is the second time this year that SBI is increasing its PLR and home loans.