Country's largest lender State Bank of India on Tuesday announced a hike in lending rates by 75 basis points (bps), making housing, auto and other loans dearer for both new and existing borrowers.
State-owned SBI has increased the Base Rate or the minimum lending rate by 75 basis points to 9.25 per cent. The new rate is effective from May 12, the lender said in a statement.
The hike in SBI's lending rates comes a week after the Reserve Bank of India raised its lending and borrowing rates by 50 basis points.
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SBI has also increased its Benchmark Prime Lending Rate (BPLR) by 75 basis points which would mean that the existing borrowers will also have to pay more for their loans. With this, the BPLR goes up to 14 per cent.
Deposit rates
SBI has also raised the deposit rates by up to 225 basis points on select four maturities.
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Many banks have been on a rate hike spree since the RBI's decision to raise short-term key rates in its annual credit policy on May 3.
Over a dozen banks, including Punjab National Bank, ICICI Bank, Oriental Bank of Commerce and Corporation Bank, have raised the interest rates in the last one week.