SBT to raise PLR by 50 bps to 14%

Public sector lender State Bank of Travancore today said it will raise its benchmark prime lending rate (PLR) by 50 basis points (bps) to 14 per cent with effect from Monday, falling in line with other leading banks like PNB, Axis Bank and ICICI Bank.

The bank decided to enhance the benchmark PLR from 13.50 per cent to 14 per cent with effect from August 4, SBT said in a filing with the Bombay Stock Exchange.

The Reserve Bank of India in its July 29 quarterly monetary policy raised the repo rate (short term lending rate) by 50 basis points and Cash Reserve Ratio (a mandatory reserve banks must keep with the RBI) by 25 bps.

Following the apex bank's decision, many private and public sector lenders raised their PLR and deposit rates.

HDFC Bank and ICICI Bank, two of the largest housing finance providers in the country, yesterday hiked floating home loan rates by 0.75 per cent, a move that would increase overall repayment by an estimated over 12 per cent.

Country's second largest public sector lender, Punjab National Bank, increased its prime lending rate to 14 per cent.

Private sector lender Axis Bank also raised its PLR by 0.5 per cent to 15.75 per cent.

Yesterday another private ING Vysya said its PLR by 50 basis points to 16.25 per cent.