Two private sector lenders, Kotak Mahindra Bank and Dhanlaxmi Bank, on Thursday announced raising
lending and
deposit rates by up to 3 per cent.
Kotak Mahindra Bank in a statement said it will hike its base rate, or the minimum lending rate, by 50 basis points to 8.75 per cent with effect from March 1.
The bank also hiked benchmark prime lending rate (BPLR) by 50 basis points to 17.50 per cent, making its existing loans costlier.
Dhanlaxmi Bank increased interest rates on term deposits by up to 3 per cent depending on maturities.
The maximum increase of 3 per cent has been made for short-term deposits having a maturity of 46 to 90 days where depositors will earn an interest of 9 per cent per annum, Dhanlaxmi Bank said in a release.
For the 91-179 days term, depositors will earn an interest of 8.75 per cent per annum, up by up to 1.50 per cent, it added.
Leading banks like State Bank of India, ICICI Bank and HDFC Bank have hiked their lending rates after the Reserve Bank of India raised key policy rates by 0.25 per cent last month to tame inflation.
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