Dhanlaxmi Bank raises rates by 25-50 bps

Private sector lender Dhanlaxmi Bank hiked its base rate and benchmark prime lending rates or BPLR by 25 and 50 basis points to 10.75% and 20.25% respectively, with effect from September 19. Last Friday, the Reserve Bank of India had increased its repo rate by 25 bps. Dhanlaxmi became the first bank to transmit such rate hike.

“The hike in our base rate and BPLR follows the recent interest rate hike by RBI and reflects the tight monetary conditions,” Bipin Kabra, CFO, Dhanlaxmi Bank said in a release.

Early last month, the bank had revised its base rate and BPLR by 50 and 100 basis points respectively to 10.75% p.a. and 20.25% p.a.

While some big lenders including Bank of Baroda , State Bank of India , HDFC are reportedly averse of hiking rates immediately, small lenders like Bank of Maharashtra(BoM) and others are likely to raise rates soon.