MORE BANKS HIKE BASE RATES

Bank of India has hiked its base rate to 9 per cent from 8.5 per cent and its benchmark prime lending rate (BPLR) to 13.25 per cent from 12.5 per cent, with immediate effect.

The bank had hiked deposit rates by 50-100 basis points on certain maturities on December 6.

Oriental Bank

Oriental Bank of Commerce (OBC), too, has hiked its deposit rates by 25-150 basis points across various maturities. The bank has also hiked its lending rates by revising upwards the base rate and BPLR.

While the base rate has been hiked by 50 basis points to 9 per cent, the BPLR has gone up by 75 basis points to 13.25 per cent. The lending rates will be revised from 15^th December. The base rate was last revised on October 1 from 8 per cent to 8.5 per cent per annum.

The lending rates are being revised to cover the incremental increase in cost of deposits and to protect the net interest margins (NIM), sources in the bank said. The lending rate revision will help the bank in maintaining NIM at the current level, it said.

OBC has also launched a special deposit scheme, Oriental 1000, carrying an interest rate of 8.75 per cent for 1000 days. Senior citizens will get an extra 0.5 per cent interest.

UCO Bank

UCO Bank has revised its base rate from 8.5 per cent to 9 per cent and BPLR from 12.5 per cent to 13 per cent. The revised rates will come into force from 15^th December.

The bank has already hiked the interest rates, by 50-150 bps, on term deposits of less than Rs 1 crore of various maturities.

SOURCE: http://www.thehindubusinessline.com/2010/12/15/stories/2010121553180600.htm