SBI follows HDFC Bank, raises base rate by 20 bps

Rate hikes follow RBI's decision to raise repo rate by 25 bps

State Bank of India (SBI), the country's largest lender, today said it will increase its base rate or minimum lending rate by 20 basis points from Thursday. The base rate of the bank will be revised to 10% from 9.80% now.

On Saturday, HDFC Bank, the second largest private sector lender in India, had increased its minimum lending rate by 20 basis points to 10%.

Both the banks have also increased their benchmark prime lending rate (BPLR). While HDFC Bank's revised BPLR is now at 18.50%, SBI will increase it to 14.75% with effect from November 7, 2013.

The rate hikes come following the Reserve Bank of India's (RBI) decision to raise the policy repo rate by 25 basis points on October 29, 2013.

Other top lenders including ICICI Bank, Axis Bank, Bank of Baroda and Punjab National Bank (PNB) are yet to announce any revision in their minimum lending rate.

HDFC Bank, however, has pared interest rates on deposits maturing in 46 days to six months by 25 basis points. The private lender now offers 8.25% interest on these deposits compared to 8.50% earlier.