Dena Bank ups lending rates by 25 bps

Medium-sized state-run lender Dena Bank today became the second bank to raise its base rate by 25 basis points to 10.2%.

The bank has also upped its benchmark lending rate by a similar quantum to 15.25%, the lender said in a release here. The new rates will be effective from tomorrow.

Since the Reserve Bank had raised its key policy rates by 25 bps at its mid-quarter policy review on June 16 -- the tenth hike since March, 2010, during which time it has upped the short-term lending and borrowing rates a by whopping 250 basis points to 7.5 and 6.5%, respectively to batten down inflation-- many banks have hinted at upping their base rates.

Yesterday, the Bangalore-based state-run lender Canara Bank became the first lender to do so, when it raised its base rate and lending rates by 25 bps to 10.25% effective from July 1, and the benchmark lending rate by a similar amount to 14.50%, attributing it to rise in the cost of funds.