Leading public sector lender, Bank of Baroda (BoB), today increased its benchmark prime lending rate by 0.75 per cent to 14 per cent with effect from August 11.
The bank has spared its existing housing, educational and auto loan borrowers from the PLR hike. Also, new housing loans up to Rs 30 lakh will not be impacted by the rate hike, BoB said in a release here today.
However, its customers will have to pay 0.5 per cent more for new housing loans above Rs 30 lakh and new auto, consumer loans, the bank said.
BoB hiked its lending rates after many banks, including the second largest public sector bank, Punjab National Bank and the largest in private sector, ICICI Bank, increased their PLRs after RBI hiked its key rates on July 29.
The Reserve Bank, in its quarterly monetary policy review, hiked the cash reserve ratio and repo rate by 0.25 per cent and 0.5 per cent respectively to check inflation, now at 12.01 per cent.
Amongst the lenders who have hiked their lending rates are home loans lender HDFC, Union Bank of India, Bank of India, Jammu & Kashmir Bank, IDBI Bank, Axis Bank, IndusInd Bank, Bank of Rajasthan, Yes Bank, Canara Bank, Corporation Bank and Allahabad Bank.
Meanwhile, India's largest lender, State Bank of India and another public sector lender, Central Bank of India, are yet to take a decision on their interest rate structure.
Both banks are expected to hike their rates in the near future.
