SBI hikes key lending rates by 25 bps; other banks may not follow:
The country’s largest lender Bank said:
1.Raise two key lending rates by 25 basis points (bps) each, a move that will likely push up loan servicing costs for its customers.
2.State Bank of India (SBI) hiked its base rate and benchmark prime lending rate— which are used as reference points to set rates on all types of loans—to 8.5% and 13.25%, respectively.
3.The bank said in a statement that the new rates will be effective from 25 April,2011.
4.SBI thus becomes the first lender to increase rates after the Reserve Bank of India hiked its key policy rates by 25 basis points each in March to fight resurgent inflation, the eighth such rate hike over the past 12 months.
5. one basis point is a hundredth of a percentage point.
6.Kolkata-based Allahabad Bank hiked its base rate by 0.5% to 9.5% and its benchmark prime lending rate by 0.25% to 13.5%.
1.Raise two key lending rates by 25 basis points (bps) each, a move that will likely push up loan servicing costs for its customers.
2.State Bank of India (SBI) hiked its base rate and benchmark prime lending rate— which are used as reference points to set rates on all types of loans—to 8.5% and 13.25%, respectively.
3.The bank said in a statement that the new rates will be effective from 25 April,2011.
4.SBI thus becomes the first lender to increase rates after the Reserve Bank of India hiked its key policy rates by 25 basis points each in March to fight resurgent inflation, the eighth such rate hike over the past 12 months.
5. one basis point is a hundredth of a percentage point.
6.Kolkata-based Allahabad Bank hiked its base rate by 0.5% to 9.5% and its benchmark prime lending rate by 0.25% to 13.5%.
7.Punjab and Sind Bank increased its benchmark prime lending rate and base rate to 14.25% and 9.5%, respectively.
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