State Bank of Bikaner and Jaipur (SBBJ), the largest associate bank of the SBI Group, today raised its lending rate by 50 basis points and deposit rates by 25-50 basis points across various maturities.
The Prime Lending Rate (PLR) of the bank has been increased from 12.25 per cent to 12.75 per cent with effect from August 20, State Bank of Bikaner and Jaipur informed the Bombay Stock Exchange.
Following the increase, home, auto and corporate loans have become more expensive for existing borrowers. From July 1, PLR was replaced by a base rate, which is a floor on lending rates. Loans taken prior to this date, however, are linked to PLR, though borrowers have the option to switch over to the base rate.
The decision comes days after SBBJ's parent, State Bank of India (SBI), raised its PLR by 50 basis points to 12.25 per cent. The new rate of SBI became effective from August 17.
As far as the revision in fixed deposit rates is concerned, SBBJ increased the interest rate by 50 basis points to 3.5 per cent for term deposits of 15-45 days' tenor. The deposit rate increase is the maximum in this slab.
For fixed deposits with a tenor between 181 days and less than one year, the new interest rate will be 6.25 per cent against the existing 6 per cent, while 1-2 year fixed deposits will attract an interest rate of 7.25 per cent, an increase of 25 basis points.
The interest rate on term deposits of between 2 to 3 years' tenor will go up by 25 basis points to 7.5 per cent from tomorrow, while interest on the 5-10 years' maturity slab has been increased to 7.75 per cent.
