State Bank not to hike PLR for now

The State Bank of India (SBI) has no immediate plans of hiking the benchmark prime lending rate (PLR).

"The SBI is not hiking the benchmark PLR as of now since there is no need for it at this stage," acting chairman and managing director T S Bhattacharya told reporters here on Tuesday.

He pointed out that a hike in PLR is necessary when the cost of deposits go up. "Now is not the time to decide on hiking PLR," he added.

On whether the bank will increase the interest on deposits, Bhattacharya replied in the negative: "In the rising interest rate scenario, deposit rates cannot fall as alternative avenues are available. We have just increased the deposit rates in May."