Mumbai: Country’s largest lender, State Bank of India (SBI) said on Friday that it will be hiking its lending rates very soon on the back of a rise in its cost of deposits.
“They (lending rates) were raised about two months ago. There has been a huge amount of pressure on liquidity...its not just getting tighter, but liquidity has become more volatile in the system,” SBI chairman O P Bhatt said.
“I think the interest rates will go up on the lending side,” he added.
The bank will also be raising its base rate this quarter, Bhatt said, adding the low cost of deposits witnessed through the September quarter is hardening due to which it will have to go in for this move.
SBI is amongst the few lenders who have not increased their base rates after the Reserve Bank’s mid quarter policy review on 16 September.