State Bank of Mysore hikes base rate by 0.1% to 10.25%

Hike effective from November 16

State Bank of Mysore today said it has increased base rate by 0.1% to 10.25%, to be effected later this week.

"Informed BSE that the Bank has increased the base rate by 10 bps from 10.15% to 10.25% effective from November 16, 2013," it said in a filing to the regulator.

The bank further informed that it has not brought any changes in the benchmark prime lending rate (BPLR) which is at present 15%.

The Bangalore-headquartered bank is one of the five associate banks of State Bank of India.

Base rate is the minimum lending rate below which banks are not allowed to lend.

Earlier this month, the country's largest public sector lender State Bank of India (SBI) and private lender HDFC Bank had also raised their minimum lending rates.

Both the banks had raised their base rates by 0.2% each to 10% and 9.80%, respectively. The hike in base rate by banks will make housing, auto and corporate loans costlier for the borrowers.

Banks have been increasing their minimum lending rate after the Reserve Bank increased the key lending rate or the repo rate by 0.25% to 7.75% in its monetary policy review last month.