New Delhi: Oriental Bank of Commerce (OBC) has increased its Prime Lending Rate (PLR) by 50 basis points to 13.75% to maintain its margin.
“The Asset Liability Committee (AlCO) decided to increase the PLR from 13.25% to 13.75% to maintain its net interest margin,” said a senior official of OBC.
Besides, the bank has also revised deposits rates up to 50 basis points for some maturities. The new rates would be effective from July 15.
In addition, OBC also launched special deposit scheme, which offers to pay 9.55% and 10.05% for the senior citizens. The scheme called Oriental Bank Akshay Kiran Deposit Scheme is for 500 days.
The decision to hike PLR comes in the wake of RBI increasing short term lending (Repo) rate by 0.75% to 8.5% and increased the mandatory cash requirements for banks by 0.50% to 8.75%, to squeeze money supply for taming inflation.
Major public sector lenders, notably State Bank of India, Punjab National Bank and Canara Bank, have already hiked their benchmark prime lending and deposit rates.