A recent press report said that more number of banks has hiked their lending and deposit rates, following the hike in key short term rates by the Reserve Bank of India.
Bank of Maharashtra has hiked its base rate and benchmark prime lending rate by 25 basis points. The revised base rate is 10.5 per cent and BPLR, 14.75 per cent. Kotak Mahindra Bank also hiked its base rate and BPLR by 25 bps its new base rate is 9.75 per cent. The bank has also hiked deposit rates across various maturities by 10-50 bps.
Reports also said that Dhanlaxmi Bank has hiked its base rate by 50 basis points to 10.75 per cent and BPLR by 100 bps to 20.25 per cent.
Karnataka Bank Limited has also hiked the deposit rates for certain bands, for maturity band from 91-180 days, the new rate is 7.75 per cent which was earlier 7.5 per cent; above three years to five years, the rates have gone up to 9.5 per cent from 9.25 per cent; and above five years the rates will be 9.25 per cent.
The hike in lending rates will slow down the loan business of banks as home loan and other loan borrowers have started hesitating to take up loans due to high interest rates.