State-owend Indian Bank today said it will increase its benchmark prime lending rate (BPLR) by 0.25 per cent with effect from today.
The bank's BPLR has gone up from 13.25 per cent to 13.50 per cent. The BPLR is the interest rate that commercial banks charge their most credit-worthy customers. Banks are free to decide the BPLR but their interest rates have to have a reference to the BPLR fixed.
The RBI will announce its credit policy on January 25 where it is expected to hike interest rates to curb inflation.