A recent press report said that the state-run Bank of Maharashtra has revised its base and lending rates by 0.25 percent each to 10.25 and to 14.50 per cent respectively.
Reports said that the base rate of the bank was 10 per cent prior to the revision and its prime lending rate was at 14.25 per cent. As a result of the Reserve Bank’s tight monetary policy to control inflation the key policy rates have gone up almost ten times since March 2010 to 7.5 and 6.5 per cent.
Due to the continuous rise of the inflation driven by higher prices of fuel and manufactured goods, the analysts have said that there are chances for the Reserve Bank of India to hike its rates at the first quarter monetary policy review. The rate of inflation has gone up to .44 per cent for June, up from 9.06 per cent in May which is due to the hike in fuel prices and manufactured goods.
The hike in interest rate will effect the borrowers of the bank. The bank offers home loan, vehicle loan, agricultural loans, personal loan, education loan etc.