Allahabad Bank not to hike lending rate

This despite the fact that RBI took steps to address exchange rate volatility, which will mostly likely harden bond yields, increase money market rats

Allahabad Bank has no plans to increase its lending rate even as the Reserve Bank of India's (RBI) steps to address exchange rate volatility is likely to harden bond yields and increase money market rates.

"Immediate impact of the measures has been on overnight rates and hardening of yields on bonds across maturities...RBI's stance will not put any pressure on our funding cost and hence does not warrant any upward correction in our bank's base rate," Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, said.