No increase in base rate for now, says BoI

After largest lender State Bank of India and second largest private sector bank HDFC Bank raised their minimum lending rate (base rate), public sector lender Bank of India today ruled out following its peers for now.

"As of now I don't feel the need to increase the base rate," bank's Chairperson and Managing Director Vijayalakshmi Iyer told reporters here.

But she was quick to add that "we also need to be in the market place. We have to watch out because my liquidity condition is very comfortable now and deposit growth in H1 was also quite significant. We will see and definitely take a call on base rate."

She said the bank's risk management committee is looking into the matter.

State Bank today revised its base rate by 20 basis points to 10% from 9.80%. It also increased the benchmark prime lending rate by a similar amount from 14.55% to 14.75%.

Earlier this month, SBI raised fixed deposit rate by 0.2% on select maturity.

Second largest private sector bank HDFC Bank has also increased its minimum lending rate by 20 basis points to 10%.

The move came after the Reserve Bank last week increased repo rate by 25 basis points to 7.75% in its second quarter policy review. The October 29 hike was the second in two months.

The RBI also lowered the marginal standing facility rate by 25 basis points from 9% to 8.75%.