Download MyFamilyInvestment Toolbar to keep updated of Best Investment Options!!!

SBI and HDFC have announced hike in lending rates after RBI hiked key rates by an aggressive 50 basis points to tame inflation. Though, most analysts were expecting banks to increasing lending rates by similar quantum, SBI has hiked rates by 75 basis points.

By hiking its base rate to 9.25% and benchmark prime lending rate to 14%, SBI aims to offset margin pressure arising out of the 50 basis point hike in savings deposit rate. Also, the overall cost of funds have increased, after the RBI raised the signalling rates—the rates at which lends to and borrows from banks by 50 basis points each last week.

HDFC bank, the second largest private sector lender, hiked its lending rates by 50-55 bps effective from May 12, 2011. While it hiked base rate by 55 bps to 9.25%, the benchmark prime lending rate or BPLR went up by 50 bps to 17.75%.

Free Update on Mobile
Subscribe to BestInvestments Google Groups