SBI to hike base rate, benchmark prime lending rate from tomorrow. Details here

  • BPLR will be hiked by 70 basis points or 0.7 per cent to 14.85 per cent, effective 15 March

Meghna Sen
First Published14 Mar 2023
Signage outside a State Bank of India Ltd. (SBI) branch in Mumbai.
Signage outside a State Bank of India Ltd. (SBI) branch in Mumbai.(Bloomberg)

The nation's largest lender State Bank of India (SBI) will raise the base rate and Benchmark Prime Lending Rate (BPLR) from Wednesday. The bank revises both the BPLR and the base rate on a quarterly basis.

BPLR will be hiked by 70 basis points or 0.7 per cent to 14.85 per cent, effective 15 March, according to the bank's website.

The announcement would make loan repayment linked to BPLR costlier. The current BPLR rate is 14.15 per cent. It was revised last in December 2022.

The bank will also hike the base rate by similar basis points to 10.10 per cent, effective Wednesday. The current BPLR rate is 9.40 per cent. It was revised last in December 2022.

EMIs to go up

The EMI amount for the borrowers who have taken loans at the base rate would go up.

These are the old benchmarks on which banks used to disburse loans. Now most of the banks provide loans on the External Benchmark Based Lending Rate (EBLR) or the Repo-Linked Lending Rate (RLLR).

The increase in the benchmark lending rates comes weeks ahead of the Reserve Bank of India's (RBI) monetary policy meeting on 6 April, which is again expected to hike rates to curb inflation, even as global markets lowered rate hike bets from the US next week following the banking crisis.

The RBI monetary policy committee is likely to deliver the expected 25-basis point (bps) rate hike in April, economists said on Tuesday.

"We continue to expect the RBI to hike policy rates by 25 bps in April. The January and February prints will only increase the (RBI's) concerns on core inflation showing persistence," said Gaura Sen Gupta, economist with IDFC First Bank.

India's headline and core inflation has been unrelenting, with data post market close on Monday showing annual retail inflation remained above the central bank's upper limit, easing only slightly to 6.44 per cent from January's 6.52 per cent.

"We expect the focus to remain on reducing inflation, both globally and in India," said Sen Gupta.

"The RBI will continue to remain non-committal on the future rates path, as the fluid global situation demands frequent macro re-assessments," Madhavi Arora and Harshal Patel, economists at Emkay Global wrote in a note.

SBI shares were trading 1.10 per cent lower at 523.85 apiece on the NSE in Tuesday's late noon deals.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeIndustryBankingSBI to hike base rate, benchmark prime lending rate from tomorrow. Details here

Most Active Stocks

Bharat Electronics

288.40
10:29 AM | 23 MAY 2024
4.75 (1.67%)

Tata Steel

175.45
10:29 AM | 23 MAY 2024
2.15 (1.24%)

Vedanta

472.40
10:24 AM | 23 MAY 2024
-14.6 (-3%)

NTPC

372.30
10:29 AM | 23 MAY 2024
-1.6 (-0.43%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Rail Vikas Nigam

372.25
10:29 AM | 23 MAY 2024
30.7 (8.99%)

Mazagon Dock Shipbuilders

3,125.35
10:29 AM | 23 MAY 2024
245.1 (8.51%)

Adani Enterprises

3,391.20
10:29 AM | 23 MAY 2024
251.6 (8.01%)

Hitachi Energy India

11,125.00
09:59 AM | 23 MAY 2024
784.8 (7.59%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    75,413.000.00
    Chennai
    75,710.000.00
    Delhi
    75,562.000.00
    Kolkata
    75,562.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.98/L0.00
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    HomeMarketsPremiumFor youGet App