Banks’ interest rates on deposits, lending go up again

Barely a week after Reserve Bank of India (RBI) raised key policy rates by 25 basis points and asked banks to restrain lending and promote deposit growth, a slew of commercial banks have begun by increasing their benchmark lending rates and deposit rates. As many as six PSU banks announced hike in base rates, benchmark prime lending rate and deposit rates by 25-50 basis points across various maturities. Bank of India increased its Base Rate (BR) from existing 9.00 per cent  to 9.50 per cent a year and Benchmark Prime Lending Rate (BPLR) from existing 13.25 per cent to 13.75 per cent per annum.  Dena Bank increased its BR by 50 basis points from 8.95 to 9.45 per cent. Two others Oriental Bank of Commerce and Indian Bank hiked deposit and lending rates by 50 basis points, while Indian Overseas Bank raised its base rate from 9 per cent to 9.5 per cent. Oriental Bank has also revised its deposit rates by 25-50 bps across various maturities. Bank of Baroda revised its rates of interest payable on term deposits by 25 bps.