Mumbai: A day after the Reserve Bank hiked its key short-term lending and borrowing rates by 0.5% each, private sector Yes Bank Wednesday raised its base rate and benchmark prime lending rate by 0.5% to 9.50% and 19%, respectively.
The new rates will be with immediate effect, the bank said in a press release issued here.
In response to the increase in the cost of funds and keeping in view market conditions, the bank has decided to increase both its base rate and BPLR by 0.5% each, it said.
The bank’s founder, managing director & CEO, Rana Kapoor, said, “to further the monetary policy transmission of the Reserve Bank of India, YES Bank has increased its base rate and PLR by 50 basis points each.”
The private lender also welcomed the RBI’s move to increase interest on savings account deposits by 0.5% to 4%.
On Tuesday, the RBI hiked its key short-term lending and borrowing rates by 0.5% each with immediate effect to tackle inflation. The short-term lending (repo) rate now stands at 7.25% and the borrowing (reverse repo) rate at 6.25%.
IDBI Bank, had, late evening yesterday, raised its base rate and prime lending rate by 0.5% each with effect from 5 May. Its base rate or the minimum lending rate would now stand at 10% while its BPLR would be 14.50%.