Corporation Bank raises lending rate by 35 basis points

State-owned Corporation Bank today raised base rate or minimum lending rate by 35 basis points to 10.25% in response to the monetary tightening measures taken by RBI earlier this month.

The bank has increased base rate from 9.90% to 10.25% with effect from July 1, Corporation Bank informed the Bombay Stock Exchange.
With the hike, new housing, auto and other loans would become costlier.
Earlier this month, the RBI hiked key short-term lending and borrowing rates by 25 basis points (0.25%) each with immediate effect to tackle inflation.
The short-term lending (repo) rate now stands at 7.5% and the borrowing (reverse repo) rate at 6.5%.
Following this, some banks, including ING Vysya Bank, IndusInd Bank, raised their interest rates while others may raise it in the coming days.