PNB, OBC RAISE LENDING AND DEPOSIT RATES BY UP TO 1 PER CENT

Punjab National Bank (PNB) raised both lending and deposit rates by up to 75 basis points in response to a hefty rate revision by the RBI.

The base rate or the minimum lending rate has been increased by 75 basis points to 10.75 per cent, PNB said in a statement.

Even the Benchmark Prime Lending Rate (BPLR) has been hiked by similar percentage points to 14.25 per cent, it said.

With the increase, all new and existing loans, including home, auto for individuals and those for the corporates would become expensive by at least 75 basis points.

The bank has also raised interest rates on term deposits on select maturities, it added.

The revised rate will apply to all loans from August 1, 2011, it said.

Meanwhile, another public sector lender Oriental Bank of Commerce (OBC) also raised lending and deposit rates.

Both the base rate and BPLR of OBC has been revised upward by 50 basis points to 10.75 per cent and 15 per cent, respectively.

SOURCE: http://articles.economictimes.indiatimes.com/2011-07-29/news/29829354_1_deposit-rates-basis-points-base-rate