Mumbai: State-owned Corporation Bank today raised base rate or minimum lending rate by 35 basis points to 10.25% in response to the monetary tightening measures taken by RBI earlier this month.
The bank has increased base rate from 9.90% to 10.25% with effect from 1 July, Corporation Bank informed the Bombay Stock Exchange.
With the hike, new housing, auto and other loans would become costlier.
Earlier this month, the RBI hiked key short-term lending and borrowing rates by 25 basis points (0.25%) each with immediate effect to tackle inflation.
The short-term lending (repo) rate now stands at 7.5% and the borrowing (reverse repo) rate at 6.5%.
Following this, some banks, including ING Vysya Bank, IndusInd Bank, raised their interest rates while others may raise it in the coming days.