State Bank of India (BoI) has announced a lending rate hike of 10 basis points, a move that will make borrowing, including retail, expensive. The loan increase comes ahead of the Reserve Bank of India’s monetary policy announcement on April 5.
The new rate would be effective from April 1, BoI said in a regulatory filing on Saturday.
The bank has increased the markup by 10 bps from the existing level of 2.75 percent to 2.85 percent, and with the current repo rate of 6.5 percent, the repo-based lending rate (RBLR) will be 9.35 percent, it said.
Meanwhile, in a separate filing, another public sector lender Indian Bank raised the lending rate linked to base rate and Benchmark Prime Lending Rate by 5 basis points.
The new rates are effective from April 3 in the case of Indian Bank.