Country's second-largest private lender HDFC Bank has decided to raise its lending rates by 50 basis points in line with its peers making its home, auto and corporate loans more expensive.
The base rate, or the minimum lending rate, of HDFC Bank will become 10% from the existing 9.50%, sources said.
At the same time, the benchmark prime lending rate (BPLR) of the bank is expected to be increased by similar percentage points to 18.50%.
The bank has also decided to raise fixed deposits rates by up to 75 basis points on the select maturities effective tomorrow, sources said.
HDFC Bank's fixed deposit rate in the 1 year 1 day to 1 year 15 days basket is likely to be 9% per annum as against existing 8.25%, an increase of 75 basis points.
Besides, interest rate for term deposits between 46-60 days will go up by 25 basis points to 7% from the prevailing 6.75%.
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However, interest rates on other fixed deposits have been left unchanged.
Yesterday, country's top two lenders SBI and ICICI Bank announced hike in lending rates by 50 basis points each in response to tight monetary policy of the central bank.
Both SBI and ICICI have increased the base rate, or the minimum lending rate, to 10% from the existing 9.50%.