Public sector lender State Bank of Mysore today hiked lending rates by 50 basis points (bps) with effect from tomorrow, following the hike in policy rates by the Reserve Bank of India (RBI) last month.
The base rate, or the minimum lending rate, of the bank would stand at 10.25%. The benchmark prime lending rte (BPLR) would be 15%, State bank of Mysore said in a filing to the Bombay Stock Exchange.
A host of private sector lenders, including HDFC, have hiked lending rates, following the monetary action by the RBI on July 26 and many more are likely to do so in the coming days as cost of funds has gone up.
The hike in interest rates come after the RBI raised its key policy rates last week by a hefty 50 basis points to check high inflation.
The short-term lending (repo) rate of RBI now stands at 8% and the short-term borrowing (reverse repo) rate by a same margin to 7%.
Subsequently, the interest rate under the Marginal Standing Facility, an additional borrowing window, has gone up to 9% from the earlier level of 8.5%.