HDFC Bank customers should brace themselves for a hike in equated monthly installments (EMIs) as the bank has decided to increase its base rate by 0.50 percentage points and benchmark prime lending rates (BPLR) by 0.75 percentage points with effect from Monday.
However, depositors will be able to earn more on their deposits as the bank has also decided to hike interest rates on term deposit up to 1 percentage points on various maturities.
The hike comes close to the RBI's mid-quarter monetary policy review on March 17 in which the regulator is expected to hike interest rates again.
Hindustan Times has learnt that bank's new base rate would be 8.7%, up from the existing 8.2% and new BPLR would be 17.25% up from the existing 16.5%.
The bank had hiked its base rate by 0.45 percentage points on February 24 this year while BPLR was increased in December 10 previous year.