The bank also hiked its Benchmark Prime Lending Rate (BPLR) upwards by 50 basis points making loans expensive for the existing borrowers.

Besides, the bank has increased its deposit rates across tenor buckets by upto 50 basis points.

Another private sector lender, Lakshmi Vilas Bank Monday raised fixed deposit rates by up to 2 % on select maturies.

Interest rate on 46-90 days fixed deposit has been raised by 1.75 % to 6 % from existing 4.25 %, Lakshmi Vilas Bank said in a statement.

The base rate has been increased by 50 basis points from 8.75 % to 9.25 % with effect from May 10, Kotak Mahindra Bank said in a declaration.

All categories of loans (other than the exceptions permitted by RBI) will henceforth be priced with reference to the revised Base Rate, it said.

On 5-year fixed deposit, the rate has been increased from 7 % to 9 %.

Banks have been on a rate hike spree since the Reserve Bank's decision to raise short-term key rates including the repo and reverse repo by 50 basis points in its Annual Credit Policy on May 3.

The repo rate and reverse repo rate now stand at 7.25 and 6.25 basis points, respectively.

Besides, the banking regulator also upped the savings bank deposit interest rate to 4 % from 3.5 %.

Source: [financial express]