State Bank of India (SBI) hikes base rate, benchmark prime lending rate by 20 bps.
State Bank of India (SBI) has hiked its base rate by 20 basis points to 10 per cent from 9.8 per cent. Base rate is the rate below which banks cannot lend.
The country’s largest commercial bank has also increased its benchmark prime lending rate (BPLR) by 20 basis points from 14.55 per cent to 14.75 per cent.
These changes will come into effect from November 7, 2013, SBI said in a filing with the stock exchanges.
With the Reserve Bank of India (RBI) increasing the repo rate by 25 basis points each in two successive monetary policy review events, it was widely anticipated that the public sector banks would follow suit through lending rate hikes.
With SBI — the country’s largest commercial bank — increasing base rate, the other state-owned banks are also expected to go in for a base rate hike.