State-owned lender, Bank of Baroda (BoB), has increased its benchmark prime lending rate (BPLR) to 12.50% from 12.00% effective from August 6, while retaining its base rate intact.
The bank had implemented the base rate system with effect from July 1, 2010 and its base rate continues to be at 8%. Earlier, effective from August 2, the bank had increased its deposit rates in the range of 25 basis points to 50 basis points for all maturities above 90 days.
Talking to FE, RK Bakshi, executive director, Bank of Baroda, said, ?all those existing loans that were linked to BPLR, will be affected by the hike in BPLR.?
?However, in segments like housing loans and auto loans, only those kinds of loans will be affected that were linked to BPLR,? addedBakshi.
Meanwhile, State Bank of Travancore also raised BPLR by 25 bps. State Bank of Travancore said on Friday it has raised its benchmark prime lending rate by 25 basis points to 12.5%, with effect from August 5. At 12.51 pm, shares were up 0.7% at Rs 638.5 on BSE.
Earlier, state-banks like Punjab National Bank, Union Bank of India, Corporation Bank and IDBI Bank had hiked their deposit and BPLR rates.