HDFC Bank may raise lending rates by up to 55 bps

In line with the industry trend, HDFC Bank has decided to hike lending rates by 55 basis points (bps) and deposits rates by up to 125 bps.

Base rate or the minimum lending rate would go up by 55 bps to 9.25%, sources said.

Even, the benchmark prime lending rate (BPLR) will be revised by 50 bps to 17.75% from existing 17.25%.

Deposit rates across select maturities will be revised upward between 25-125 bps effective tomorrow, sources added.

The Mumbai-based bank last raised its base rate by 50 bps to 8.70% on March 13.

Several banks like Punjab National Bank, ICICI Bank and Oriental Bank of Commerce raised base rate by 50 bps after the Reserve Bank hiked short-term key rates in its annual credit policy on May 3.

Yesterday, the country's largest lender SBI raised base rate and BPLR by 75 bps to 9.25% and 14%, respectively.

As far as fixed deposits are concerned, HDFC Bank is likely to raise rates between 25-125 bps on select maturities.

Fixed deposits below Rs 15 lakh with maturity between 46-60 days will earn 6.25% interest rate, up by 125 bps, highest increase among all the maturity slabs.

Interest rate for term deposits between 7-14 days will go up by 50 bps to 3.5% from the prevailing 3%, while maturity slab of 30-45 days will give 5%, 100 bps higher than the existing rate.

At the same time, the interest rate of fixed deposits with the tenor of 15-29 days has been increased by 75 bps to 4% while 61-90 days term deposit to earn 6.5%, an increase of 100 bps.

It is to be noted that RBI raise short-term key rates including the repo and reverse repo by 50 bps in its Annual Credit Policy on May 3.

The repo rate and reverse repo rate now stand at 7.25% and 6.25%, respectively.