SBI Increases Base And BPLR Rate By 5 bps; Home Loans To Get Expensive

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    After hiking its marginal cost of funds-based lending rates (MCLR) by up to 25 basis points (bps), India's largest bank SBI has increased its base rate and benchmark prime lending rate by 5 bps. A basis point is one-hundredth of a percentage point. Base rate has been increased from 8.65% to 8.70% p.a while BPLR has been revised to 13.45% as against the previous 13.40% p.a. The revised rates are applicable from April 1, 2018.

    SBI Increases Base And BPLR Rate By 5 bps; Home Loans To Get Expensive

    This is the first increase in the base rate in the last five years. With it, existing home loans from the bank will get marginally expensive. Analyst view the bank's call as a sign of gradually hardening interest rates. The last rate increase in both base rate and BPLR happened in 2013.

    Meanwhile, Allahabad bank has reduced its lending rates, its base rate has been brought down to 9.15% while BPLR has come down to 13.40% in comparison to 13.85% p.a.

    As per industry experts, the current move to change the lending rates is aimed at aligning base rate of the bank with its MCLR rate which is as per the RBI directive. So while some banks are reducing their base rates others are increasing them.

    Goodreturns.in

    Story first published: Tuesday, April 3, 2018, 10:10 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more