ALLAHABAD BANK, ANDHRA BANK HIKE BASE RATES

Allahabad Bank has increased its base rate by 50 basis points to nine per cent (from 8.50 per cent) effective December 14.

The bank has also increased interest rate on benchmark prime lending rate by 75 basis points at 13.25 per cent (12.50 per cent).

The rates have been revised in view of the changes in the interest rate scenario, the release said.

In terms of Reserve Bank of India guidelines, the bank had switched over to the new system of base rate effective July 1.

While switching over, the bank had given an option to the existing borrowers to exercise their option of continuing with the BPLR system or switching over to the base rate system.

Andhra Bank

Andhra Bank has increased base rate and Benchmark Prime Lending Rate (BMPLR) by 50 and 25 basis points respectively.

According to the revised rates which came into effect from December 13, the base rate had gone up from 8.50 per cent to nine per cent a year.

Applicability

The revised rate was applicable to all the loans and advances that were sanctioned/ renewed on or after July 1, which were linked to base rate.

The revision is also applicable to all account holders who switched over from BMPLR to base rate system.

The upwardly revised BMPLR now stood at 13 per cent as against 12.75 per cent.

It would be applicable to all loans and advances availed on or before June 30, and were linked to BMPLR.

SOURCE: http://www.thehindubusinessline.com/2010/12/14/stories/2010121451940600.htm