Considering the rise in the cost of funds for the infrastructure sector, Srei Infrastructure Finance raised benchmark lending rate by 50 basis points.
Thus, the new benchmark rate stands at 18 percent per annum effective from Sept. 1, 2013 compared to the earlier rate of 17.50 percent.
After reviewing the cost of borrowing, the company’s asset liability management committee met and decided to raise the benchmark rate.
In September 2011, the financial institution last increased its SBR by 75 basis points.
The company expects cost of funds to remain high as long as RBI’s monetary policy remains tight on the back of the overall macro-economic scenario and rupee depreciation.
Leave a Reply
You must be logged in to post a comment.