Dhanlaxmi Bank, one of the fastest growing mid-size private sector banks in India, announced an increase of 25 basis points in its base rate and Benchmark Prime Lending Rate (BPLR) effective today. The base rate and the BPLR will be revised to 10.25% p.a. and 19.25% p.a. respectively from the current 10% p.a. and 19%.
Announcing the revised rates, Mr. Bipin Kabra, Chief Financial Officer, Dhanlaxmi Bank said: “The hike in our base rate and BLPR reflects tight monetary conditions and is in line with market trends.”
The change in rate will be applicable to all new loans and existing floating rate loans. In the case of existing fixed rate loans, the change in base rate will be applicable at the reset date. Existing borrowers, whose loans are linked to BPLR, have the option to switch to the base rate system before the expiry of existing contracts, on mutually agreed terms. All the new loans sanctioned and existing loans under BPLR which comes for review will be linked to base rate only.
In May 2011, the bank had revised its base rate and BPLR by 75 basis points respectively to 10% and 19%.
