State Bank of India, the country’s largest lender,has hiked its benchmark prime lending rate by 0.50% from 12.25% to 12.75%.
The new rate will come into effect from 9 April, the bank said in a press release here today.
Many other banks such as ICICI Bank and HDFC have already raised PLR by up to one percentage points, while Bank of Baroda has increased its PLR by 75 basis points.
Banks are increasing interest rates following the RBI’s decision on March 30 to hike the repurchase rate at which it lends to banks and the deposits all banks must keep with.
The central bank’s move was part of its drive to check high credit growth and tame inflation.