Mumbai: Country's largest lender SBI on Tuesday announced a hike in lending rates by 75 basis points (bps), making housing, auto and other loans dearer for both new and existing borrowers.
State-owned SBI has increased the base rate, or the minimum lending rate, by 75 bps (0.75 per cent) to 9.25 per cent. The new rate is effective from May 12, the lender said in a statement.
The hike in State Bank of India's (SBI) lending rates comes a week after the Reserve Bank raised its lending and borrowing rates by 50 basis points.
SBI has also increased its benchmark prime lending rate (BPLR) by 75 basis points which would mean that existing borrowers will also have to pay more for their loans. With this, BPLR goes up to 14 per cent.
SBI has also raised deposit rates by up to 225 basis points on select four maturities. Many banks have been on a rate hike spree since the Reserve Bank's decision to raise short-term key rates in its annual credit policy on May 3.
Over a dozen banks, including Punjab National Bank, ICICI Bank, Oriental Bank of Commerce and Corporation Bank, have raised interest rates in past one week.