About half a dozen Indian public sector lenders, including Punjab National Bank (PNB), IDBI Bank and Central Bank of India on Friday
increased their lending and deposit rates by up to 1.5 per cent.
While all loans, including home and auto will become expensive, depositors will get
better returns on their savings. The hike in interest rates come within a week of the Reserve Bank of India (RBI)
raising its key policy rates by a hefty 50 basis points to check high inflation.
PNB, Central Bank of India and IDBI Bank have raised both base rate or the minimum lending and Benchmark Prime Lending Rate (BPLR) by 75 basis points.
Home buyers in trouble as RBI hikes key rates yet again The country's second largest public sector lender, PNB, Central Bank of India and IDBI Bank raised base rate to 10.75 per cent.
Mumbai-based IDBI Bank increased deposit rates by 25 to 150 basis points in different maturity buckets, a statement issued here said.
The hikes have been undertaken "keeping in view the measures announced by RBI, inflation and liquidity scenario," an IDBI statement said.
Other lenders like Allahabad Bank and Oriental Bank of Commerce (OBC) have increased base rate and BPLR by 50 basis points. With the hike, the base rate of Allahabad Bank and OBC has gone up form existing 10.25 per cent to 10.75 per cent.
However, deposit rates of OBC has been increased up to 100 basis points or 1 percentage point.
- With PTI inputs
Special 
