IDBI Bank hikes PLR by 50 bps; personal loans likely to become expensive

Leading PSU lender, IDBI Bank has hiked its Prime Lending Rate (PLR) by 50 basis points. Banks have adopted the tactic of hiking their PLRs in order to make customers adopt the base rate method of lending. This is likely to make personal loans costlier.

The bank has also increased its interest rates on deposits by 25-75 basis points. Many banks have hiked deposit rates on various maturities after the policy rate increase by RBI during the monetary policy review.

IDBI’s altered policy rates would be effective from 6th August 2010.

RBI has hiked repo rate and reverse repo rate by 25 and 50 basis points respectively.