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HSBC India raises base rate to 9 percent
Wednesday, 18 May 2011, 00:19 IST
Mumbai:Banking major HSBC India today said it has hiked its base rate to 9 percent per annum from 8.5 percent per annum with effect from May 12.
The bank has also raised its retail lending rate by 0.50 percent to 16.25 percent per annum from 15.75 percent per annum with effect from the same date.
The revision in the benchmark rates will be applicable to all existing and new variable rate mortgage loans linked to the base rate, the foreign lender said in a release.
This announcement follows the 0.50 percent increase in repo and reverse repo rates announced by the Reserve Bank of India on May 3.
HSBC India has also increased its savings bank account interest rate by 0.50 percent, from 3.5 percent per annum to 4 percent with effect from May 3, the release said.
The base rate acts as a minimum interest rate of a bank, below which it cannot lend except DRI advances, loans to their own employees and loans to bank depositors against their own deposits, and includes those components of lending rates that are common across all categories of borrowers.
The Reserve Bank had upped its repo and reverse repo rates by 0.50 percent to combat the persistently high inflation. The repo and reverse repo rates now stand at 7.25 percent and 6.25 percent, respectively.
Following the RBI move, a clutch of public and private sector lenders had hiked their base rates in the last few days.
Source: PTI
Source: PTI
