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Public sector lender Corporation Bank on Wednesday announced a 50-basis point hike in its base rate — the minimum rate below which it cannot lend — to 9.40 per cent.
The hike comes within a fortnight of the Reserve Bank announcing an increase in its key short-term lending and borrowing rates by 25 basis points.
Corporation Bank’s benchmark prime lending rate (BPLR) would also go up by 35 basis points
The new rates are with effect from February 14.
“The bank has revised its benchmark prime lending rate (BPLR) from 13.25 per cent per annum to 13.60 per cent per annum... and the base rate for lending from 8.90 per cent to 9.40 per cent with effect from February 14,” Corporation Bank said in a filing to the Bombay Stock Exchange.
The hike follows similar moves by other state and private lenders to increase lending rates during the last few days.
Indian Bank, Indian Overseas Bank, Bank of Baroda, Bank of India have increased their lending rates 25-50 basis points.
The base rate system has replaced the BPLR system with effect from July 1, 2010. However, BPLR regime continues for the old borrowers.
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