Public sector lender, Central Bank of India has hiked the base rate by 75 basis points (bps) to 10.75%. The revised base rate will be effective from 1 August 2011.
"We have decided to pass on the rising cost of funds to the customers to protect our margins," a senior official of Central Bank of India said.
The move comes after the Reserve Bank of India raised the key policy rates by 50 basis points earlier this week. Consequently, public sector banks like Canara Bank, Bank of India, Ratnakar Bank and private sector lenders like DCB and ING Vysya Bank also raised their key lending rates.
