Two months ahead of assembly polls in Kerala, the Congress-led opposition United Following leader ICICI Bank, HDFC Bank, India's second largest private sector bank has decided to increase its base rate by 0.45 percentage points with effect from Thursday, which will take Equated Monthly Instalments (EMIs) of auto and personal loan customers up.
Hindustan Times has learnt from the sources that bank's new base rate (currently base rate is 7.75%) will be 8.20 % from February 24.
With effect from July 1, 2010, interest rates on new loans and advances, including consumer loans, are determined with reference to base rate.
In the case of HDFC Bank car loans, two-wheeler loans and personal loans will get dearer and not home loans as the bank does not offer home loans. Also, in auto vehicle loans, only new customers will be impacted as vehicle loans are offered at fixed rate and not at floating rate.
On Wednesday ICICI Bank also announced to hike lending rates by 0.5 percentage points and fixed deposit rates between 0.25 and 0.5 percentage points with effect from February 24.
HDFC Bank had increased its base rate on January 1.