State Bank not to hike PLR now

State Bank of India (SBI) has no immediate plans to hike its benchmark prime lending rate (PLR).

"SBI is not hiking the benchmark PLR as of now since there is no need for it at this stage," SBI acting chairman and managing director T S Bhattacharya said today.

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.

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

Our Banking Bureau adds: SBI Life Insurance Company has announced a  total  of 9% return on its Lifelong Pension scheme - a bonus of 5% on the sum assured in addition to the guaranteed return of 4% for all policies in force as on March 31, 2006.

It also declared bonuses ranging from 1.25-2.75% for various endowment, children's and money back policies.