Mumbai: State Bank of India (SBI), the country’s largest lender, raised its lending rates on Thursday by 25 basis points, or 0.25 percentage point, effective Monday.
Following the increase, SBI’s minimum lending rate, or base rate, is 9.5% and prime lending rate the old benchmark lending rate is 14.25%. SBI will also raise some deposit rates by up to 1 percentage point.
The bank’s board met today to consider a rate hike.
With RBI raising its policy rate by 25 basis points to 7.5% in mid-June, banks have started increasing their lending rates. ICICI Bank Ltd, India’s largest private sector bank, raised its minimum lending rate by 25 basis points to 9.5% last Saturday.