Many more banks such as Axis Bank, HDFC Bank, Bank of India and Andhra Bank have revised their prime lending or deposit rates, after the central bank tightened monetary measures, raising reserve requirements of banks, to rein in the runaway inflation hovering around 11%.
Private lender Axis Bank has increased its housing loan rates. From July 1, Axis Bank?s floating rate for home loan will increase by 1% to 11%. The bank has not altered its 13% prevailing fixed rate for home loans. Imitiaz Ahmed, vice president (mortgage financing), Axis Bank said, ?The recent interest rate hike may affect the overall growth of our housing loan portfolio in the current fiscal, although the first quarter of the year has not witnessed such a phenomenon.?
Axis Bank?s housing credit portfolio is pegged at around Rs 8,000 crore. The bank currently processes housing loans of the value of Rs 400 crore every month.
HDFC Bank has announced a 75-basis-point rise in its prime lending rate (PLR) at 16%, effective July 1. It is the second PLR hike announced by HDFC Bank in the last fortnight. The earlier one was on June 18 by 25 basis points to 15.25%. The bank has also increased its deposit rates by 50-100 basis points across various tenors with effective July 3.
IDBI Bank has also reviewed its prime lending rate by 50 basis points to 13.75%, with effect from July 1, 2008. Simultaneously, deposit rates have also been increased by 25-75 basis points across various maturity buckets, with effect from July 4. Bank of India also hiked its deposits, varying between 25-60 basis points across different maturities, with effect from July 2, 2008. While the bank has increased its deposit rates for sums up to Rs 10 crore for a maturity period of up to 269 days to 7.50% from 7.25%, the deposit rate for the same amount for five years and above has been raised to 9.50% from 8.90%.
Hyderabad based state-owned Andhra Bank too has raised its prime lending rate by 50 basis points to 13.25% effective July 1. State Bank of Hyderabad has also raised its PLR by 50 basis point to 13.5%.
