A day after the
Reserve Bank hiked its key short-term lending and borrowing rates by 0.5 per cent each, private sector
Yes Bank on Wednesday raised its base rate and benchmark prime lending rate by 0.5 per cent each to 9.50 per cent and 19 per cent, respectively.
The new rates will be with immediate effect, the bank said in a press release issued in Mumbai.
In response to the increase in the cost of funds and keeping in view market conditions, the bank has decided to increase both its base rate and BPLR by 0.5 per cent each, it said.
The bank's Founder, Managing Director & CEO, Rana Kapoor, said, "to further the monetary policy transmission of the Reserve Bank of India, YES Bank has increased its base rate and BPLR by 50 basis points each".
The private lender also welcomed the RBI's move to increase interest on savings account deposits by 0.5 per cent to 4 per cent.
The RBI hiked its key short-term lending and borrowing rates by 0.5 per cent each on Tuesday in its annual monetary policy review with immediate effect to tackle inflation. The short-term lending (repo) rate now stands at 7.25 per cent and the borrowing (reverse repo) rate at 6.25 per cent.
IDBI Bank, had, late evening yesterday, raised its base rate and prime lending rate by 0.5 per cent each with effect from May 5. Its base rate, or the minimum lending rate, would now stand at 10 per cent, while its BPLR would be 14.50 per cent.
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