Banks may increase lending rates by up to 1 pc

Bankers on Tuesday said interest rates for borrowers, including car and home loan customers, could go up to one per cent. This was said following RBI's monetary measures announced to control inflation. According to bankers, banks would pass on the additional cost to customers as there is pressure on the lending rates. RBI hiked the CRR, the percentage of depositors' money that banks need to keep with the central bank, by 25 basis points.