IDBI Bank has raised lending and deposit rates by up to 50 basis points soon after the Reserve Bank’s monetary policy action, a move likely to be followed by other lenders in the coming days.
In response to increase in cost of funds and keeping in view the market conditions, the bank has decided to increase both base rate and Benchmark Prime Lending Rate (BPLR) by 50 basis points each, the bank said in a statement.
With the increase, base rate or the minimum lending rate will be 10 per cent and BPLR would be 14.50 per cent, it said.
Both new and existing housing, auto and other loans will become costlier by at least 50 basis points. At the same time, depositors will earn higher interest for the fixed deposits.
The Alco (asset liability Committee) of IDBI Bank reviewed the interest rates on retail term deposits and keeping in view the measures announced by RBI, inflation and liquidity scenario, the bank has decided to increase the retail term deposit rates by 25-50 basis points in different maturity buckets, it said. The revised rates will be effective from May 5, it said.