Indian Bank, IOB hike lending rate to 8.5 percent
By IANSFriday, October 1, 2010
MUMBAI - The Indian Bank and Indian Overseas Bank (IOB) Friday raised their base rates, the minimum rate of interest on loans, to 8.5 percent to match the rates of major lenders like the Punjab National Bank (PNB), Allahabad Bank and IDBI, which announced increase in their lending rates Thursday.
The Indian Bank has decided to raise its base rate from 8 percent to 8.5 percent, with effect from Oct 1, the bank said in a statement.
It has also raised its benchmark prime lending rate by 25 basis points to 12.75 percent from 12.5 percent.
In a separate statement, IOB said it has raised both base rate and benchmark prime lending rates by 25 basis points to 8.5 percent and 12.75 percent, respectively. However, the increase is not applicable on housing loans.
Three major public sector lenders - PNB, Allahabad Bank and IDBI - Thursday raised their base rates by 50 basis points to 8.50 percent.
However, the country’s largest lender State Bank of India has kept its base rate unchanged at 7.5 percent.
