A day after the RBI raised policy rates, PNB today raised lending rates by 50 basis points, making home, auto and other loans more expensive.
"The board of directors has decided to increase interest base rate and BPLR by 50 basis points effective tomorrow," PNB Chairman and MD KR Kamath told reporters after announcing the bank's annual results here.
With the increase, the base rate or the minimum lending rate will be 10% and the BPLR will be 13.50% with effect from tomorrow, PNB said.
Both new and existing housing, auto and other loans will become costlier by at least 50 basis points.
On hiking deposit rates, Kamath said, "The bank would review deposit rates later, depending on how credit growth picks up in the coming months."
Yesterday, the Reserve Bank hiked key short-term lending and borrowing rates by 50 basis points each with immediate effect to tackle inflation.
The short-term lending (repo) rate now stands at 7.25% and the borrowing (reverse repo) rate at 6.25%.
Following this, IDBI Bank had raised its base rate and BPLR by by 50 basis points each.
Shares of PNB were trading at Rs 1,119.10 on the BSE today, up 2.43% from the previous close.
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