New Delhi: Three more state-owned banks, including Oriental Bank of Commerce and Indian Bank on Tuesday raised their deposit and lending rates by 50 basis points.
Besides, Indian Overseas Bank has also raised its base rate from 9% to 9.5% with effect from Tuesday.
The decision to hike deposit and lending rates follows similar announcements made by Punjab National Bank, Allahabad Bank and Punjab & Sind Bank on Monday.
OBC has decided to raise the fixed deposit rates by 25 basis points for deposits of varying maturities. It will pay the highest rate of 9.25% for 500-day deposits.
Indian Bank has announced an increase in base lending rates by 50 basis points to 9.5%.
While the higher deposit rates would provide better returns to savers, rise in base rates would increase the EMIs for auto and home loan borrowers. Besides, corporate loans too would become expensive.
Banks have been raising interest rates following a 25 basis point hike in short-term lending (repo) and borrowing (reverse repo) rates announced by the Reserve Bank in its third quarterly review of monetary policy last week.