State Bank hikes lending rate by 50 bps

State Bank of India has revised upwards the benchmark prime lending rate (referred as SBAR) by 50 bps from 12.25% p.a. to 12.75% p.a. effective Monday, 9 April, 2007.

PTI adds: While ICICI Bank has raised PLR by up to 1%, Bank of Baroda has increased its PLR by 75 basis points.

Banks are increasing interest rates following the RBI decision on March 30 to hike the repurchase rate at which it lends to banks and the deposits all banks must keep with the central bank.

The central bank's move was part of its drive to check high credit growth and tame inflation.