Leading car loan lender in the country, HDFC Bank has raised its Benchmark Prime Lending Rate (BPLR) by 50 basis points. The new BPLR of the bank is 16.25% with immediate effect.
All loans linked with BPLR, like car and personal loans would thereby become more expensive in the same ratio.
A top HDFC Bank official said rising cost of funds has made the bank resort to such a step.
The official said, “Deposit rates in the banking system could move up further by 50-75 basis points by the end of the financial year. Depending on credit demand, base rate could also come up for review in October”.
The story of increasing BPLR began from last month with various banks resorting to this step. The leading players participating in the move comprise State Bank of India, Punjab National Bank, ICICI Bank, Union Bank of India and IDBI Bank.
They all have hiked their corresponding BPLRs by 50-75 basis points.
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