Major banks hike PLRs, more expected to follow this week
30 Jun, 2008, 2103 hrs IST, PTI
MUMBAI: With their margins under pressure after the Reserve Bank hiked its key rates to contain inflation, more public sector banks today hiked their interest rates across the board by 0.5 per cent.
Bank of India and Dena Bank hiked their benchmark prime lending rates (BPLRs) by 0.5 per cent to 13.25 per cent. Karnataka-based Vijaya Bank upped its rate by 0.25 per cent to 13.25 per cent.
Today’s hike came days after State Bank of India and a few other majors hiked their rates by 0.5 per cent.
Apart from SBI, other banks that have already jacked up their PLRs are Union Bank, Bank of Baroda, Punjab National Bank and Canara Bank.
Smaller banks had begun raising their rates soon after the Reserve Bank announced a 0.5 per cent increase in its repo and cash reserve ratio rates in a bid to combat ballooning inflation.
J&K Bank and private sector Yes Bank were amongst the first to hike their PLRs about 10 days ago. They were followed by HDFC Bank.
Banks, both in the public and private domain, are expected to raise their rates over this week.
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