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SBI increases lending, deposit rates

SBI increases lending, deposit rates
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Ahead of Reserve Bank of India’s (RBI) mid-quarter monetary policy review the State Bank of India (SBI), hiked its lending and deposit rates on September 19. The country’s larges bank hiked its base rate, or the minimum lending rate, to 9.8 per cent from 9.7 per cent.

SBI also hiked its interest rates offered on deposits by 0.25-1 percentage point across different maturities. SBI also increased it benchmark prime lending rate (BPLR) by a similar 10 basis points (bps) to 14.55 per cent effective from September 19, SBI said in a communication to stock exchanges.

Base rate replaced BPLR on 1 July 2010. One basis point is one-hundredth of a percentage point. RBI governor Raghuram Rajan is likely to hold key lending rate at 7.25 per cent on September 20 at his first monetary policy meeting.

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