Loans to acquire costlier; 5 banks to hike rates
Five leading banks, including PNB, OBC and Yes Bank, will hike interest rate by half a percentage point with effect from tomorrow, making all loans costlier.
The announcements to hike rates come within a day of the Reserve Bank hiking its lending and borrowing rates by 50 basis points each.
Punjab National Bank (PNB), Oriental Bank of Commerce (OBC), Bank of Maharashtra (BoM), IDBI Bank and Yes Bank will hike their lending rates by 50 basis points from tomorrow.
With the increase, the base rate or the minimum lending rate for PNB, OBC, IDBI and BoM will stand increased to 10 %, while that of private sector lender Yes Bank will be 9.50 %.
Besides, the Benchmark Prime Lending Rate (BPLR) of PNB stands at
13.50 %, OBC (14.25 %), IDBI (14.50 %), BoM (14.25 %) and Yes Bank (19
%).
The higher lending rates would make loans dearer for both new and existing auto, home and corporate borrowers.
Commenting on the rate hike, Yes Bank Managing Director & CEO Rana Kapoor said, "to further the monetary policy transmission of the RBI, Yes Bank has increased its base rate and BPLR by 50 basis points each".
Besides, state-run IDBI Bank would hike the retail term deposit rates by 25-50 basis points in different maturity buckets and private sector Yes Bank has increased the Savings Account deposit rates by 50 basis points to 4 % from tomorrow, thereby benefiting small savers.
On hiking deposit rates, PNB Chairman and MD K R Kamath said, "The
bank would review deposit rates later, depending on how credit growth
picks up in the coming months."
For IDBI, which hiked retail term deposit rates, a fixed deposit
with IDBI Bank for 46-90 days will earn higher interest of 6.50 %, up
from existing 6 %, while 91 days-6 months term deposit rates would go up
by 25 basis points to 7.75 %.
At the same time 270 days-1 year fixed deposit rate will go up by 50
basis points to 8.50 % and term deposit with 500 days maturity will earn
9.50 %, up 25 basis points from existing rate.
The RBI yesterday hiked the repo and reverse repo rate to 7.25 % and 6.25 % respectively, besides, raising the savings bank deposit interest rate to 4 %, from 3.5 %. Bank savings deposit rate is currently regulated by the Reserve Bank
Source: [DNA India]
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Comments (2)
Rev. Nathan Von Grif...11
Strategic Consultant Closer
I would love to see the day when American people as citizens of this country literally join in an humanitarian effort to form Banks comprised of everyday common citizens. Where we the people pool together and own Banks with the deliberate intent of eschewing all other Banks. We appoint a mayor a governor our own president of the Bank from among ourselves and control interest rates and inflation without government intervention. We loan money to countries around the world based on good merits
Kenny Lee4
Attention electronics
The bank rates more and more expensive Now