Corporation Bank today announced an upward revision of 25 basis points (0.25 per cent) in its benchmark prime lending rate (BPLR) from 13 per cent per annum to 13.25 per cent per annum.
The hike in BPLR comes after the Reserve Bank of India (RBI) raised its key lending and borrowing rates by 25 basis points in its monetary policy review this week to tackle inflation.
The benchmark prime lending rate is the interest rate which is charged by commercial banks to their most credit-worthy customers. Banks are free to fix the BPLR with the approval of their respective boards.
The revision will be effective February 1, 2011, the bank said in a filing to the Bombay Stock Exchange.
Last week, the public sector lender Indian Bank too hiked its benchmark prime lending rates by 25 basis points.