INDIAN BANK, IOB RAISE BASE RATES

Indian Overseas Bank and Indian Bank upped their base rate and benchmark prime lending rate (BPLR).

Indian Overseas Bank raised its base rate by 25 basis points to 8.50 per cent. Indian Bank upped its base rate by 50 basis points to 8.50 per cent.

Both banks have increased their BPLRs by 25 basis points each to 12.75 per cent.

State Bank of Hyderabad said that it would continue the existing base of rate of 7.75 per cent till a further review is done.

Officials of HDFC Bank, Corporation Bank, Central Bank of India, Bank of Baroda and StanChart among others told reporters that there was a northward pressure on the cost of funds since the Reserve Bank of India hiked short-term borrowing and lending rates to contain inflation.

Source: http://www.thehindubusinessline.com/2010/10/02/stories/2010100253380800.htm