ALLAHABAD BANK HIKES BENCHMARK PRIME LENDING RATE BY 50 BPS

Allahabad Bank hiked its benchmark prime lending rate (BPLR) by up to 50 basis points to 12.50 per cent in response to the RBI's decision to raise short-term rates. The BPLR was replaced by the base rate system in July, but for existing borrowers, this remains the benchmark rate.

With regard to the base rate, which is the interest rate below which banks cannot lend, Allahabad Bank has fixed it at 8 per cent.

A host of banks, including PSU lenders Punjab National Bank, Bank of Baroda, Union Bank of India, Corporation Bank and IDBI Bank, have raised their BPLRs in the last 10 days.

Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Allahabad-Bank-hikes-benchmark-prime-lending-rate-by-50-bps/articleshow/6288247.cms