Bank of Maharashtra ups lending rates by 25 bps

The state-run Bank of Maharashtra (BoM) today revised upwards its base and lending rates by 25 basis points (bps) each to 10.25% and to 14.50%, respectively.

"The new rates will be effective from Saturday," the bank said in a release here.

The bank's base rate or the minimum rate below which it cannot lend to anyone, was 10% prior to the revision, while its prime lending rate was hovering at 14.25%, the statement noted.

Following the Reserve Bank's tight monetary policy to tame inflation, the key policy rates have gone by a record 10 times since March 2010 to 7.5% and 6.5% as of June 16.

With the provisional core inflation number further rising to 9.44% for June, up from 9.06% in May, driven by higher prices of fuel and manufactured goods, analysts are expecting another round of rate hike by the central bank on July 26 at the first quarter monetary policy review.