Corporation Bank raises lending rate

State-owned Corporation Bank on Thursday raised base rate or minimum lendingrate by 35 basis points to 10.25 per cent in response to the monetarytightening measures taken by RBI earlier this month.

The bank has increasedbase rate from 9.90 per cent to 10.25 per cent with effect from July 1,Corporation Bank informed the Bombay Stock Exchange.

With the hike, newhousing, auto and other loans would become costlier.

Earlier this month, theRBI hiked key short-term lending and borrowing rates by 25 basis points (0.25per cent) each with immediate effect to tackle inflation.

The short-term lending(repo) rate now stands at 7.5 per cent and the borrowing (reverse repo) rate at6.5 per cent.

Following this, somebanks, including ING Vysya Bank, IndusInd Bank, raised their interest rateswhile others may raise it in the coming days.