Indian Bank raises lending rate by 0.05 per cent

Tags: News
Soon after announcement of status quo policy by the Reserve Bank, state-owned Indian Bank today hiked base rate or the minimum lending rate by 0.05 per cent.

"The bank has reviewed the base rate and decided to increase its base rate by 0.05 per cent from the existing 10.20 per cent to 10.25 per cent per annum, with effect from April 1," Indian Bank said in a statement.

All new loans, including home and car loans, would become costlier by 0.05 per cent with increase in base rate.

Earlier this month, another public sector lender Allahabad Bank, however, raised base rate by 0.05 per cent to 10.20 per cent from 10.25 per cent.

RBI today maintained the status quo on the key policy rate (repo), as was widely expected, and said there are risks to inflation.

The RBI, in its first bi-monthly monetary policy statement, left the short-term lending rate, or repo rate, unchanged at 8 per cent and the cash reserve ratio static at 4 per cent.

It halved the overnight call money rate to 0.25 per cent and increased the 7-day and 14-day repo limits to 0.75 per cent from 0.50 per cent.

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