Monday, January 3, 2011

Leading banks raise interest rates

Following the market trend leading banks like State Bank of India , ICICI Bank and HDFC Bank have announced an increase in lending and deposit rates on the new year eve.

SBI announced increase in the base rate by 40 basis points to 8 percent. SBI also raised benchmark prime lending rate by 25 points to 12.75 percent. The new rates would be effective from January 3.

ICICI bank raised the lending rate by 25 basis points to 8.25 percent. The bank also announced an increase in benchmark prime lending rate by 0.25 percent with effect from January 3, 2011.

Besides ICICI, private sector peers like Kotak Mahindra Bank and Dhanlaxmi bank also raised their base rate to upto 75 basis points.

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