Two private sector lenders, Kotak Mahindra Bank and Dhanlaxmi Bank, on Thursday announced raising lending and deposit rates by up to 3%.
Kotak Mahindra Bank in a statement said it will hike its base rate, or the minimum lending rate, by 50 basis points to 8.75% with effect from March 1.
The bank also hiked benchmark prime lending rate (BPLR) by 50 basis points to 17.50%, making its existing loans costlier.
Dhanlaxmi Bank increased interest rates on term deposits by up to 3% depending on maturities.
The maximum increase of 3% has been made for short-term deposits having a maturity of 46 to 90 days where depositors will earn an interest of 9% per annum, Dhanlaxmi Bank said in a release.
For the 91-179 days term, depositors will earn an interest of 8.75% per annum, up by up to 1.50%, it added.
Leading banks like SBI, ICICI Bank and HDFC Bank have hiked their lending rates after the RBI raised key policy rates by 0.25% last month to tame inflation.