BoB's PLR would go up from the existing 12.75 per cent and the new rate would be effective from July 1, the bank said in a filing to the Bombay Stock Exchange.
The lending rate revision would lead to increase in PLR-related lendings like floating home loan, corporate loan, car loan etc.
BoB's announcement came after major public sector lenders SBI and PNB raised their BPLRs by 0.5 per cent to 12.75 per cent and 13 per cent, respectively.
Similarly, Bangalore-based Canara Bank also hiked its BPLR by 0.5 per cent to 13.25 per cent.
The move also follows suit of a host of lenders such as HDFC Bank, Jammu & Kashmir Bank and Yes Bank, which hiked their respective BPLRs in the range of 0.25 per cent to one per cent to protect margins.
The rate hike comes in the wake of RBI increasing its short-term lending rate and the mandatory level of deposit that banks are required to park with the central bank by 50 basis points each to contain inflation.