HDFC Bank, India’s second-largest private sector lender, on Monday raised its base rate by 25 basis points (bps) to 9.5 per cent and the benchmark prime lending rate (BPLR) to 18 per cent, according a source privy to the development.
“The new rates will be applicable from tomorrow,” the source said.
The bank has also increased it deposit rate for the one year-16 days bucket by 75 bps to 9.25.
Private lender Axis Bank has also raised its base rate and BPLR by 25 basis points each with effect from July 5. The base rate was revised to 9.75 per cent, while BPLR was increased to 17.50 per cent.
Earlier in the day, Bank of India and Dhanlaxmi Bank also raised their base rates by 25 bps each. While Bank of India increased the rate by 25 bps to 10.25 per cent, Dhanlaxmi Bank raised the base rate by the same figure to 10.25 percent. The private lender also raised its deposit rate on select maturities by 100 bps.
Almost all lenders have increased their base rates by 25 bps after the Reserve Bank of India increased key policy rates by 25 bps during its mid-quarter review on July 16. This was the 10th successive rise since March 2010. On July 7, the country's largest lender, State Bank of India, had increased its lending rates by 25 bps to 9.5 per cent and deposit rates by up to 100 bps. The bank had also raised its benchmark lending rate to 14.25 per cent.
ICICI Bank, Indian Overseas Bank, Corporation Bank, Dena Bank Canara Bank and Bank of Baroda have also raised lending rates recently.
