By- Correspondent | Date- May 11, 2011 | Place- Mumbai
The largest lending bank in India, the State Bank of India (SBI), on Tuesday, 10th of May announced an increase of 75 basis points in its lending rates. The new lending rates would now stand at 9.25% with effect from May 12, SBI has confirmed. It is to be mentioned that SBI had only recently increased the lending rates by 25 basis points to 8.50% effective from April 25th. The new hike in State Bank of India’s (SBI) lending rates comes a week after the Reserve Bank of India (RBI) raised its lending and borrowing rates by 50 basis points.
With this, SBI has made housing, auto and other loans more expensive for existing as well as new customers or borrowers. SBI has also increased its benchmark prime lending rate (BPLR) by 75 basis points which would lead the existing borrowers to pay more for their loans.
However this comes as no surprise after all main competitors of SBI, including Punjab National Bank, ICICI Bank, Oriental Bank of Commerce and Corporation Bank increased its rates recently. The Allahabad Bank and Punjab and Sind bank had increased its rates too, in the recent past.