After like Punjab National Bank and Union Bank of India, it is now the turn of Corporation Bank to increase its prime lending rate. It has increased its loan rates by 50 basis points. This has made bank’s personal loans costlier.
The bank said, “Corporation Bank has revised its benchmark prime lending rate (BPLR) from 12 per cent to 12.50 per cent with effect from August 2, 2010″.
PNB and Union Bank of India have increased their BPLRs to introduce the customers to base rate.
Deposit rates have increased in most banks. The banks took this decision because of the banking regulator’s step of increasing repo and reverse repo rates during the monetary policy review.
Many lenders like ICICI Bank, PNB and HDFC Bank have raised deposit rates post the RBI step.
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