The State Bank of India (SBI) raised its lending rate by 75 basis points (bps) to 9.25%, making housing, auto and other loans dearer for both new and existing borrowers. The new rate will be effective from May 12, said the bank in a statement.
The state-owned bank also announced a similar hike in its rate applicable for old customers who came in till June 30 to 14%. With this move all SBI floating rate home loan customers-existing and new-will see their loans turn expensive. All other new loans will also turn expensive.
SBI also raised deposit rates by 0.75 to 2.25 percentage points on deposits of up to 180 days.
The hike comes a week after the Reserve Bank raised its lending and borrowing rates.