SBI raises lending rates by 50 basis points
06:08 PM,Aug 11,2011 Mumbai, Aug 11 Country's largest bank SBI today raised lending rates by 50 basis points, making its home, auto and corporate loans costlier.The bank revised the base rate, or the minimum lending rate, upwards by 50 basis points from 9.50 per cent to 10 per cent, effective from August 13, State Bank of India said in a statement.The benchmark prime lending rate also goes up by similar percentage points to 14.75 per cent, making loans for existing borrowers dearer by at least 50 basis points.Following the Reserve Bank's decision to raise short-term key rates in its first quarter review of monetary policy last month, lenders have responded by increasing interest rates.Over two dozen banks, including Punjab National Bank, Bank of Baroda, Oriental Bank of Commerce have raised interest rates.
After introducing new lending rate system by Reserve Bank of India, now SBI has set its base rate for lending at 7.5 percent, aiming at eliminating banks opaque lending practices and to improve policy transmission at Mumbai on Tuesday, Jun 29.