HDFC Bank hikes lending rates by 50-55 bps
Following footsteps of the State Bank of India, which raised its rates by 75 bps, HDFC bank, India’s private sector banking major, hiked its lending rates by 55 basis points. Its short-term deposits rates are at 4-6.75%, reports CNBC-TV18.
Moneycontrol.com
A day after India's largest lender the State Bank of India raised its key lending rates by 75 basis points, HDFC bank, the second largest private sector lender, hiked its lending rates by 50-55 bps effective from May 12, 2011. While it hiked base rate by 55 bps to 9.25%, the benchmark prime lending rate or BPLR went up by 50 bps to 17.75%.
Ashish Parthasarthy, Head-Treasurer of HDFC Bank told CNBC-TV18 that a hike in lending rates is in-line with the market and the margins will be maintained between 3.9-4.2%.
Base rate is the minimum rate below which banks are not permitted to lend. In 2010, the Reserve Bank of India introduced it. BPLR was introduced by the RBI in the year 2003 with an aim to bring transparency in loan pricing.
The bank too hiked its short-term deposits rates by 25-125 bps. Now, 46-60 day deposit scheme offers 6.25% from 4% earlier and the 9 month 7 days to 1 year deposit scheme offers 7.25%, an increase of 25 bps. 30-45 days deposits offer 5%, a rise of 100 bps. In view of a hike in savings deposit rates to 4% from 3.50 by the Reserve Bank of India (RBI), banks across the board are hiking rates for their short term deposit schemes to maintain its attractiveness. Lending, deposit rate hike in-line with market: HDFC Bank
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