Allahabad Bank hike base rate by 25 bps
Allahabad Bank announced a 25 basis points (bps) increase in lending rates, following the industry-wide trend of rising rates.
Its executive director MR Nayak told ET that the bank has decided to hike the benchmark base rate by 25 bps to 10.25% from July 15.
Accordingly, its fresh and existing housing and car loan will be dearer by this extent, as these are mostly linked to banks’ base rate. Interest rates on loans and advances are linked to base rate since July 1, 2010.
The Kolkata-based bank has also raised the benchmark prime lending rate (BPLR) by 25 bps to 14.50% a year. BPLR is linked to loans and advances sanctioned up to June 30, 2010.
Borrowers who opted for fixed rate loans will not be impacted by the latest decision as their contracted rates will remain unchanged.
A host of other lenders including the country’s largest State Bank of India also raised lending rates by 25 bps earlier. Both SBI and ICICI Bank raised their respective base rate to 9.5% a year while Canara Bank, Corporation Bank, Indian Overseas Bank, Viyaja Bank raised it to 10.25%. Dena Bank has revised its base rate to 10.20% a year.
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