Since all the other lending rates are linked to the benchmark PLR, the move will now trigger a rate hike across the board. As of now, private sector banks have refrained from increasing rates, though they are keeping a careful watch on the situation.
SBI has increased the benchmark PLR to 10.75%. It also hiked the interest rate on home loans by 25 basis points (bps) across all maturities. Delhi-headed PNB has hiked its benchmark PLR by 50 bps from 10.75% to 11.25%, citing an increase in cost of funds. OBC has raised it from 11% to 11.5%. Union Bank of India too revised its benchmark rate upwards by 0.50% from 10.75% to 11.25%.
PNB and OBC officials said their banks would take a call on home loan rates in the next few days. PNB is likely to raise home loan rates by 50 bps.
...AND THE LIST GROWS
| SBI, Union Bank, PNB, BoB and OBC hike lending rates |
Private banks yet to take a call, watching the situation closely
Rate hike due to pressure on margins
Deposit rates also hiked by SBI, PNB, BoB and OBC