Moneycontrol Bureau In the aftermath of liquidity tightening measures imposed by the Reserve Bank of India (RBI) to check the rupee's fall, many banks resorted to hiking their base rates. Base rate is the rate below which the bank cannot lend, and any increase in it makes auto, home and corporate loans costlier. Let's take a look at the new base rates of top lenders in India
ICICI Bank on Thursday announced an increase in its base rate by 0.25 percent effect from August 23, 2013. The revised rate will be 10 percent per annum as against 9.75 percent per annum at present. ICICI had already hiked deposit rates by 25-75 bps for the 46-289 days tenure last week. Hence the hike in benchmark prime lending rate (BPLR) was expected.
In the beginning of this month, housing loan major HDFC had hiked its base rate by 20 bps to 9.80 percent. HDFC’s Retail Prime Lending Rate (RPLR) currently stands at 16.55 percent. For loans upto Rs 30 lakh, rates have gone up from 10.15 percent to 10.40 percent, while rates for loans above Rs 30 lakh have gone up from 10.40 percent to 10.65 percent.
On Monday, Axis Bank hiked its base rate by 25 basis points, from 10 percent to 10.25 percent. The new base rate will be effective from 19 August. This move will make loans expensive for existing as well as new loan customers.
Also, Kotak Mahindra Bank raised benchmark lending base rate by 0.25 percent to 10 percent. Public sector Andhra Bank hiked its base rate by 25 bps to 10.25 percent. On Friday, Bank of Maharashtra its base rate by 25 bps to 10.25 percent effective August 26.
But here's the good news for last. In what may come as a relief to borrowers, State Bank of India (SBI) said it is not considering any increase in its lending rates even though some private lenders have resorted to that step. "We are not (thinking of hiking lending rates) because we are witnessing a surge in deposits. We are getting a huge influx from the liquid mutual funds and last week, we have got about Rs 10,000-15,000 crore of new money. We are sitting on a significant amount of extra cash," Pratip Chaudhari, chairman of SBI told reporters.