 "Srei BNP Paribas raises benchmark rate by 50 bps")
Srei BNP Paribas, player in infrastructure and construction equipment financing, has hiked its benchmark rate by 50 basis points, from 17.25% to 17.75%, with immediate effect.
The Company’s Asset Liability Management Committee has decided to increase its benchmark rate. This has been necessitated because of the continuing increase in borrowing cost. Srei BNP Paribas had last increased its SBR in July 2012 by 25 basis points.
D K Vyas, CEO, Srei BNP Paribas, said, “Increasing cost of borrowing has necessitated this increase in rate which is expected to increase further. This interest rate increase comes at a time when fund flow to the infrastructure sector has been slightly restrained by banks because of a host of issues affecting the sector. However, our rate hike has become imperative to maintain the quality of our portfolio. Premised on a relationship model, we affirm our commitment to our long standing customers and will continue to be a steadfast partner in their growth.”