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SBI hikes base rate, benchmark prime lending rate. Details here

Country’s largest lender State Bank of India (SBI) has hiked benchmark prime lending rate by 70 basis points. With the increase, the revised rate is now 13.45%, as per the information posted on SBI’s website. The new rate is effective from today. 15 September.

“Benchmark Prime Lending Rate (BPLR) revised as 13.45 per cent per annum with effect from September 15, 2022,” SBI posted on its website.

The announcement would make loan repayment linked to BPLR costlier. The current BPLR rate is 12.75 per cent. It was revised last in June.

The bank has also raised the base rate by similar basis points to 8.7 per cent, effective today.

The EMI amount for the borrowers who have taken loans at the base rate would go up.

The bank revises both the BPLR and the base rate on a quarterly basis. The lending rate revision by the SBI is likely to be followed by other banks in the days to come.

The increase in the benchmark lending rates comes weeks ahead of the Reserve Bank of India’s (RBI) monetary policy meeting, which is again expected to hike rates to tame inflation.

According to the schedule, the next three-day monetary policy meeting will be held from September 28 to September 30.

SBI shares rallied close to 3% to hit record high of ₹574.7 per share on the NSE in Wednesday’s trade. Meanwhile, on BSE, the scrip marked a new all-time high of ₹574.65 apiece despite selling pressure on the Dalal Street.

Source By: livemint