Banks hike lending rate by 25 bps

Banks hike lending rate by 25 bps

Mumbai: HDFC Bank Ltd has hiked both its base rate and prime lending rate by 25 basis points each to 9.5% and 18% respectively, a bank official said. The rates will be effective from Tuesday.

Earlier in the day, public sector lender Bank of India and the small-sized South-based lender Dhanlaxmi Bank also hiked their minimum rate of lending or the base rates by 25 bps each .

While Bank of India Monday increased lending rates by 25 bps to 10.25%, Dhanlaxmi also jacked up rate by a similar quantum to 10.25%, taking its benchmark lending rate dearer by 25 basis points to 19.25%. The private lender has also increased the deposit rate on select maturities by 100 bps.

Two other public sector lenders, Union Bank of India and Oriental bank of Commerce (OBC), also hiked their lending rates by 25 basis points.

Post hike, the base rate or the minimum lending rate of UBI stands at 10.25%, the bank said in a filing to the Bombay Stock Exchange. Further the base rate of OBC would be 10.25%. Also the benchmark prime lending rate (BPLR) has been raised to 14.50%, from 14.25%. While the rate hike for OBC is effective from Tuesday, that is UBI is with immediate effect.