iconimg Wednesday, May 27, 2015

Press Trust Of India
New Delhi, November 06, 2013
Home, auto and consumer loans are expected to become costlier with the country's largest lender State Bank of India (SBI) raising its lending rates by 0.20% with effect from Thursday. The bank has revised the base rate or the minimum lending rate to 10% from 9.80%, SBI said in a statement.

At the same time, the Benchmark Prime Lending Rate (BPLR) was also raised by 0.20% from 14.55% to 14.75%.

Upward revision in the lending rate by SBI may prompt others public and private sector banks to follow suit.

The decision come a day after HDFC Bank raised the base rate by 0.20% to 10%.

Earlier this month, SBI raised fixed deposit rate by 0.2% on select maturity.

With the revision, term deposit between 180-210 days less than Rs. 1 crore now earn 7 % against 6.80 % earlier.

Last week, RBI raised short-term lending (repo) rate by 0.25% to 7.75%, making cost of fund expensive for the banks.

At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75%.

Accordingly, the bank rate was reduced to 8.75% with immediate effect.

Consequently, the reverse repo rate is adjusted upward to 6.75%.

The RBI has left unchanged other rates such as the cash reserve ratio at 4% and the mandatory holdings in government securities and other liquid assets as a solvency measure - Statutory Liquidity Ratio (SLR)- at 23%.

SBI had last raised base rate by 0.10% to 9.80% in September this year.