SBI raises base rate, bplr by 75 basis pts

State bank of India (SBI), India’s largest lender, has increased its and its (BPLR) by 75 basis points (bps) each, following the recent increases by the Reserve Bank of India (RBI).

The bank’s base rate, or the minimum lending rate, will be 9.25 per cent, while the BPLR will be 14 per cent from May 12. This is the steepest rate rise by a commercial bank since the last policy announcement. This is also the second rate increase by the state-run lender in a month. On April 25, the bank had raised its lending rates by 25 bps. According to guidelines, banks can revise their base rates at least once every quarter.

“The increase in lending rates is in line with the rise by earlier this month, which was aimed at curbing inflation,” said Managing Director and Chief Financial Officer Diwakar Gupta. He also said the bank did not expect a further increase in after the latest rise.



Currently, the bank offers home loans at 100 bps above the and car loans at 225 bps above the base rate. With this rate rise, the bank would now charge interest on home loans at 10.25 per cent and car loans at 11.50 per cent.

had raised policy rates by 50 basis points in its annual monetary and credit policy announcement on May 3. The mid-quarter review is slated for June 16. After the rate increases by RBI, most banks had raised their lending rates. The base rates of a few banks have even touched double digits.

Chairman had earlier said may revise both lending rates and to aid the transmission of policy actions.

image
Business Standard
177 22
Business Standard

SBI raises base rate, bplr by 75 basis pts

BS Reporter  |  Mumbai 

State bank of India (SBI), India’s largest lender, has increased its and its (BPLR) by 75 basis points (bps) each, following the recent increases by the Reserve Bank of India (RBI).

The bank’s base rate, or the minimum lending rate, will be 9.25 per cent, while the BPLR will be 14 per cent from May 12. This is the steepest rate rise by a commercial bank since the last policy announcement. This is also the second rate increase by the state-run lender in a month. On April 25, the bank had raised its lending rates by 25 bps. According to guidelines, banks can revise their base rates at least once every quarter.

“The increase in lending rates is in line with the rise by earlier this month, which was aimed at curbing inflation,” said Managing Director and Chief Financial Officer Diwakar Gupta. He also said the bank did not expect a further increase in after the latest rise.



Currently, the bank offers home loans at 100 bps above the and car loans at 225 bps above the base rate. With this rate rise, the bank would now charge interest on home loans at 10.25 per cent and car loans at 11.50 per cent.

had raised policy rates by 50 basis points in its annual monetary and credit policy announcement on May 3. The mid-quarter review is slated for June 16. After the rate increases by RBI, most banks had raised their lending rates. The base rates of a few banks have even touched double digits.

Chairman had earlier said may revise both lending rates and to aid the transmission of policy actions.

RECOMMENDED FOR YOU

SBI raises base rate, bplr by 75 basis pts

State bank of India (SBI), India’s largest lender, has increased its base rate and its benchmark prime lending rate (BPLR) by 75 basis points (bps) each, following the recent policy rate increases by the Reserve Bank of India (RBI).

State bank of India (SBI), India’s largest lender, has increased its and its (BPLR) by 75 basis points (bps) each, following the recent increases by the Reserve Bank of India (RBI).

The bank’s base rate, or the minimum lending rate, will be 9.25 per cent, while the BPLR will be 14 per cent from May 12. This is the steepest rate rise by a commercial bank since the last policy announcement. This is also the second rate increase by the state-run lender in a month. On April 25, the bank had raised its lending rates by 25 bps. According to guidelines, banks can revise their base rates at least once every quarter.

“The increase in lending rates is in line with the rise by earlier this month, which was aimed at curbing inflation,” said Managing Director and Chief Financial Officer Diwakar Gupta. He also said the bank did not expect a further increase in after the latest rise.



Currently, the bank offers home loans at 100 bps above the and car loans at 225 bps above the base rate. With this rate rise, the bank would now charge interest on home loans at 10.25 per cent and car loans at 11.50 per cent.

had raised policy rates by 50 basis points in its annual monetary and credit policy announcement on May 3. The mid-quarter review is slated for June 16. After the rate increases by RBI, most banks had raised their lending rates. The base rates of a few banks have even touched double digits.

Chairman had earlier said may revise both lending rates and to aid the transmission of policy actions.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard