State-owned lenders Bank of India and Canara Bank on Thursday increased their base rates, the minimum rate a bank charges to its clients, by 75 basis points (bps) and 50 bps, respectively. Bank of India increased its base rate from 10% to 10.75%, while the benchmark prime lending rate (BPLR) from 14.25% to 15%, with effect from July 28, 2011. Meanwhile, Canara Bank said it will increase base rate from 10.25% to 10.75% and BPLR from 14.5% to 15% with effect from August 1. The lender has also increased deposit rates in the range of 25 basis points to 150 basis points for various maturities.
RBI cautions RRBs in dealing with entities in 8 nations
The Reserve Bank asked all Regional Rural Banks to follow due diligence while dealing with transactions from persons and entities in eight countriesBolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria and Turkey. The apex bank cited a 2011 statement from the Financial Action Task Force which cautioned countries regarding the risks associated with these nations.
Ratnakar Bank raises base rate by 25 bps to 9.75%
Kolhapur-headquartered private lender Ratnakar Bank today hiked its base rate, or the minimum rate of lending, by 25 basis points to 9.75%. The action, effective from July 30, comes within three days of the Reserve Bank of India raising its key short term rates by a higher-than-expected 50 basis points.