Mumbai, Aug. 1: Bank behemoth SBI, home loan titan HDFC and Punjab National Bank today raised their prime lending rates (PLR), setting the stage for an interest rate revision across the financial services landscape.
Result: customers will end up paying between 0.25 per cent and 0.5 per cent more on their housing loans. The PLR is a benchmark rate that the banks charge their best customers. Home loan rates are lower than the PLR.
Neither raised their deposit rates — and that sends out a signal that the spread between deposit and lending rates will widen.
The day began with HDFC raising its retail prime lending rate (RPLR) by half a per cent to 12.25 per cent.
As a result, interest on both fixed and floating home loans have gone up by the same margin to 11 per cent and 9.50 per cent, respectively. Officials said that since the RPLR has been raised, existing floating rate home loans will also be adjusted.
A rate hike by the banks was on the cards after the RBI raised its short-term lending and borrowing rates by 0.25 per cent a week ago.
SBI raised its benchmark prime lending rate by 25 basis points to 11 per cent. It is learnt that the housing loan rate of the bank will also go up by quarter of a percentage point.
ICICI Bank said it is monitoring the cost of funds before taking a decision.