Private sector Yes Bank became the first lender to raise its base rate by 50 basis points today, within an hour of the Reserve Bank's decision to hike key short-term interest rates.
The Mumbai-headquartered bank hiked its base rate, or the minimum rate of lending, by 50 basis points to 10.25% with immediate effect, it said in a statement.
The bank has also hiked the rate on loans taken under the older BPLR system by 50 basis points.
"The increase in base rate will enable the bank to fully absorb the increased costs on account of rising interest rates," it added.
The RBI today hiked the repo rate, its short-term lending rate, by a higher-than-expected 50 basis points to 8%, which is bound to transmit into lending rate hikes by banks.
