Banks starts reacting to rate hike by RBI

Reacting to the hike made by the Reserve Bank of India in the policy rates, several banks including Punjab National Bank announced an increment in the deposit and lending rates by up to 100 basis points.

PNB raised BPLR from 12.50 to 13.00 percent while Allahabad Bank revised BPLR from 13.25 to 13.50 percent, Punjab and Sind Bank raise the BPLR by 25 basis points to 14.25 percent.

The three banks also raised their base rates by 50 points. The banks also revised the deposit rates across various maturities and also introduced new deposit schemes.

In a statement Punjab National Bank said "in response to changing liquidity conditions in the system, inflation, other macroeconomic factors and monetary measures undertaken by the Reserve Bank".

The new rates are in effect from today itself.