Mumbai, August 04: Three banks — HSBC, United Bank and Dena Bank — hiked their lending and base rates today by up to 50 basis points, following the recent tightening by the Reserve Bank to tame inflation hovering around 10 percent.
On the other hand state-run Indian Overseas Bank (IOB) upped its term-deposit rates by up to 75 basis points.
Hongkong and Shanghai Banking Corporation India (HSBC) said it has revised upwards its base rate, the minimum lending rate, by 50 basis points to 9.75 percent, with effect from yesterday.
Further, depositors with one of the country’s oldest foreign banks will now get better returns on their savings as rates have been hiked by 50 basis points.
With this, HSBC India will now offer an interest of 9 percent per annum to its customers for a term of 365 days and 9.5 percent to senior citizens.
Besides, PSU lender United Bank of India increased its lending rate by 35 basis points with effect from today.
From now, the bank’s base rate would stand at 10.60 percent and benchmark prime lending rate (BPLR) at 14.85 percent.
State-run lender Dena Bank today hiked its minimum lending rate or the base rate by 50 basis points to 10.70 percent.
It also increased interest rates on loans given under Benchmark Prime Lending Rate (BPLR) by a similar 50 basis points to 15.75 percent.
Dena Bank said it has raised interest rates on deposits by 50-150 basis points depending on their maturity level.
Also, with immediate effect, public sector IOB revised rates for deposits for a period of 91 to 120 days from 7.25 percent to 7.75 percent, while those for period of 121 to 179 days it has been revised from 7 percent to 7.75 percent.
The rates for deposits for 180 to 269 days has been hiked from 7.25 percent to eight percent, while for deposits ranging between 270 to 332 days it has been increased to eight percent from the present 7.50 percent.
The interest rates for deposits with a period of 334 days but less than one year has been revised to eight percent from 7.50 percent.
More than dozen banks have already announced hike in interest rates following the monetary action by the RBI on July 26 and many more are likely to do so in the coming days as cost of funds has gone up.
Yesterday, housing mortgage firm HDFC had raised lending rate by 50 basis points to 16.50 percent with effect from August 1.
The hike in interest rates come after the Reserve Bank raised its key policy rates last week by a hefty 50 basis points to check high inflation.
The short-term lending (repo) rate of RBI now stands at 8 percent and the short-term borrowing (reverse repo) rate by a same margin to 7 percent.
Subsequently, the interest rate under the Marginal Standing Facility, an additional borrowing window, has gone up to 9 percent from the earlier level of 8.5 percent.
—PTI