BUSINESS
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July.
The country's largest lender, State Bank of India, on Thursday said it increased its base rate, or the minimum rate of lending, to 9.80 %, a day ahead of the RBI's policy review.
"State Bank of India has revised the base rate by 0.10 % from 9.70 % per annum to 9.80 %," it said in a statement. Retail term deposit rates have been revised upward, it said.
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July. The decision comes on the eve of the mid-quarter review of the monetary policy.
According to watchers, new RBI Governor Raghuram Rajan has been given some room to take an accommodative stance after the US Federal Reserve surprisingly delayed the tapering of liquidity infusion.
SBI also increased the spreads on auto and home loans by as much as 0.20 %, which will affect new borrowers.
Home and auto loan borrowers typically pay a margin, or a spread, above the base rate, which is arrived at as per the risk and quantum of borrowing.
The bank has hiked rates for loans under the benchmark prime lending rate, an older system of computing interest rates, to 14.55 % from 14.45 %. The lending rate hikes are effective from today, it added.
A senior bank official said the decision to increase rates was taken by the asset liability committee, which met late last evening.
"There has been an increase in our cost of funds and the pressure will only increase further as we enter the festive season, which increases the requirement for liquidity," the official told PTI.
New housing loans under Rs 30 lakh will come at 10.10 % as against 9.95 % earlier, while interest rates on auto loans will go up to 10.75 %, the official said.
Manipur CM N Biren resigns nearly two years after ethnic violence in state
Vicky Jain's 'bizarre' comment leaves wife Ankita fuming with anger, netizens declare him 'red flag'
Bengaluru cops stop Ed Sheeran's street performance, video goes viral - Watch
Viral video: Lion spotted on moving jeep? Here’s the truth
YouTuber Gaurav Taneja reveals he was 'shocked' over his wife's decision to...
Teddy Day 2025: Date, history and significance of the fourth day of Valentine’s week
'Sugar is the biggest toxin...': Naga Chaitanya calls sugar more toxic than alcohol and tobacco
‘Over for Blinkit, Zepto’, this startup claims ‘delivering humans’ in 10 minutes, shocks netizens
Pratik Gandhi on his struggles, managing job with acting: 'Chaar gante sona luxury tha' | Exclusive
Why did Kumar Vishwas' wife cry after Manish Sisodia lost Delhi Elections: 'Not always power...'
'Fast and Furious' cars collision creates a Rohit Shetty scene on Indian road, viral video
'Go to the room, cry...': Salman Khan's wisdom on love, breakup is all you need this Valentine's Day
Parvesh Verma, BJP leader who defeated Arvind Kejriwal, makes BIG claim, says, 'we have to do...'
Sumona Chakravarti on joining Kapil Sharma show: 'Went from Ram Kapoor's sister to...'
Is Elon Musk still interested in buying TikTok? Tesla CEO provides BIG update, claims...
Groom's mother and mama join hands to burn the dance floor down, viral video sets internet on fire
What is historic 'Blue Gold', costlier than real gold?
Salman Khan opens up about his daddy issues with Salim Khan: 'How can he be right all the time...'
Powerful 7.6 magnitude earthquake jolts Caribbean, tsunami advisory issued
Salman Khan supports Sooaj Barjatya, pens note on his OTT debut, calls his show Bada Naam Karenge...
Little girl's energetic dance to 'London Thumakda' leaves netizens in awe, WATCH viral video
Meet man who left IIT, later earned Rs 286 crore in just 20 weeks by...
Viral Video: Sadhus playing cricket at Mahakumbh mela wins hearts online, watch
Happy Chocolate Day 2025: Wishes, WhatsApp messages, quotes to share with your partner on February 9
Meet woman, who plays key role in Rs 33661 crore company, daughter of billionaire
Vicky Kaushal and Akshaye Khanna didn't talk to each other on the Chhaava sets because...
Nita Ambani, Nick Jonas share candid moments at Siddharth Chopra's wedding, WATCH viral video
UPSC Civil Services Prelims Exam 2025 registration date extended by 7 days; apply at upsc.gov.in
'Fight for progress of Delhi will continue', says LoP Rahul Gandhi after Congress's Delhi debacle
Namma Metro Fare Update: Travel rides get costlier by 50 per cent from THIS date; check details
'AAP-Da Mukt Delhi': PM Modi hails BJP's resounding victory in assembly polls 2025
'He is fit to...': India batting coach shares BIG update on Virat Kohli ahead of IND vs ENG 2nd ODI
IND vs ENG: Rohit Sharma on cusp of breaking Sachin Tendulkar's record in elite openers list
NASA confirms Sunita Williams' return date, denies US President Trump’s ‘stranded’ claim
Meet man whose airline went bankrupt, still has Rs 43894 crore net worth, he is...
Ranji Trophy: Suryakumar Yadav's horror show with bat continues, India star clean bowled for just...
Chocolate Day 2025: 5 easy homemade chocolate recipes to impress your partner
Mass layoffs at Infosys as company terminates 700 freshers over...
Priyanka Chopra wears 62-emerald bead Bvlgari necklace at her brother's wedding
Chocolate Day 2025: Date, significance, history and celebration ideas
Meet Swati Singh, wife of BJP's Parvesh Verma, who defeated Arvind Kejriwal by 4089 votes
Meet man, son of world’s richest woman, he is set to take over Rs 1642000 crore empire as...
SHOCKING! Bride's family cancels wedding at last moment over groom's low...
Nita Ambani, Shloka Mehta stun in gorgeous sarees at Priyanka Chopra's brother's wedding
Meet Trisha and Sanidhi, daughters of BJP's Parvesh Verma, who defeated Arvind Kejriwal