Mumbai: South-based Dhanlaxmi Bank on Monday hiked its base rate or minimum rate of lending by 50 basis points to 10.75%, in line with other lenders.
The bank also increased the interest rate on loans under the older benchmark prime lending rate (BPLR) system by 1% to 20.25%, a statement issued here said.
Both the rate hikes are effective from Monday.
“The hike in our base rate and BPLR reflects tight monetary conditions and is in line with market trends,” the bank’s chief financial officer Bipin Kabra was quoted as saying.
The move follows a higher-than-expected 50 basis points hike in short-term lending rates by the Reserve Bank of India (RBI) in its quarterly review of the credit policy on 26 July in order to fight uncomfortable inflation levels.
A slew of lenders, including Yes Bank, ING Vysya, Bank of India and Central Bank of India, among others, have hiked their lending rates as a result of the RBI monetary tightening measures.