PSU bank, State Bank of Indore has hiked its lending rate by 50 basis points. 1 basis point means 0.01% points.
The rate hike implies higher cost of home, car and other loans for the borrowers.
State Bank of Indore, which is a subsidiary bank of the country’s biggest lender, State Bank of India and shortly to join with SBI has taken the decision to increase lending rates after SBI has increased its BPLR by 50 basis points to 12.25%.
The amalgamation process of both the banks is set to commence from August 26. SBI presently holds 98% stake in State Bank of Indore.
Post this merger, SBI will have 5 associate banks-State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. From these, the State Banks of Bikaner and Jaipur, Mysore and Travancore are listed on the exchanges.