Tags:
Journalism of Courage
August 5: Bank of India and the Punjab National Bank have announced a 50 basis point hike in their prime lending rates taking it to 12 per cent from 11.50 per cent. The move has been necessitated following the Reserve Bank of India’s recent move to raise the bank rate and the Cash Reserve Ratio (CRR).
While PNB raised its prime term lending rate to 12 per cent against the existing 11.50 per cent, BOI retained PTLR at the present level of 12 per cent. The revised rates by BOI is effective from August 4, while PNB’s new rates will be implemented from August 7. In a statement, PNB said the maximum spread remains unchanged.
Yesterday, the Delhi-based Oriental Bank of Commerce announced revision of its PLR to 12 per cent from 11.5 per cent while Dena Bank, and ICICI Bank were the first to hike their PLRs. State Bank of India has said that the bank is likely to announce its decision on PLR by next week.
In its desperate attempts to check the rupee slide, the RBI had announced last month a hike in the benchmark bank rate by 100 basis points and increased the cash reserve ratio by 50 basis points.
