The largest lender in the country, State Bank of India finally had to hike the lending rates. Along with the lending rates it has also hike the deposit rates by a maximum of 225 basis points. It has hiked both BPLR and Base rates by 75 basis points, now they stand at 14 percent and 9.25 percent.
It is most likely that a lot more banks will follow what SBI has done, it is also important t mention that despite hike in the policy rates several times by RBI it kept its lending rates unmoved and due to which the lending rates of the bank were much lower than the other players.
The Chairman of Bank of Baroda Mr. M D Mallya said "Last couple of times SBI had not increased rates, so they are now aligning with other banks."
