Indian Overseas Bank hikes base rate

July 30th, 2011 - 4:56 pm ICT by IANS  

Mumbai, July 30 (IANS) Indian Overseas Bank Saturday said it has revised its base rate from 10.25 percent to 10.75 percent in response to the Reserve Bank of India’s 50 basis points increase in key policy rates. The hike will be effective from Monday.

“The base rate of the bank has been revised from 10.25 percent to 10.75 percent with effect from Aug 1 for all advances linked to base rate,” the bank said in a regulatory filing.

The bank has also increased its benchmark prime lending rate (BPLR) by 50 basis points from existing 14.50 percent to 15 percent.

Most lenders are expected to pass on to consumers the recent hike in policy rates by the RBI, which July 26 hiked key policy rates by 50 basis points in the 11th such exercise since January 2010 to tame inflation.

The repurchase rate, the interest the central bank levies on short-term borrowing by commercial banks, has been hiked to 8 percent from 7.5 percent and reverse repurchase rate, or interest paid on short-term lending, raised to 7 percent from 6.5 percent.

At the Bombay Stock Exchange, the shares of the Indian Overseas Bank were 2.43 percent up to trade at Rs.139.35.

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