SBI hikes base lending rate by 10 bps to 7.6 per cent
20 Oct 2010
The State bank of India (SBI), the country's largest lender, today announced a modest increase in its base rate or the minimum lending rate for new borrowers by 10 basis points to 7.6 per cent effective 21 October 2010.
The base rate or the minimum lending rate, which is linked to all kinds of advances, would make loans costlier for borrowers.
The base rate hike is expected to push interest rates on housing and auto loans by at least 10 basis points. SBI is currently offering home and car loans at teaser rates and these rates are expected to remain till December.
SBI has also raised the base prime lending rate (BPLR) for the existing customers by 25 basis points to 12.5 per cent from earlier 12.25 per cent.
This is the first time SBI is revising the base rate since its introduction in July this year. Banks have to review their base rate every quarter, as per the RBI guidelines.
The Reserve Bank, in its September monetary policy review, had raised its short-term lending (repo) and borrowing (reverse repo) rates for banks.
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