PNB hikes base lending rate to 8.50 per cent; Axis Bank revises it to 7.75 per cent

State-run Punjab National Bank (PNB) and India's third largest private sector bank, Axis Bank, today announced increases in their respective base lending rates beginning 1 October.

PNB announced a 50 basis point increase in the minimum rate of interest on loans, or the base rate, to 8.50 per cent while Axis Bank raised its base rate to 7.75 per cent.

Close on the heels of State Bank of India's deposit rate hike, PNB, the second largest public sector bank, also announced increases in term deposit rates between and 25 and 50 basis points beginning 1 October. (See: SBI hikes deposit rates by 25 to 75 bps)

"Bank has decided to raise its base rate from 8 per cent to 8.5 per cent per annum with effect from 1 October," PNB said in a filing with the Bombay Stock Exchange.

The maximum rates on deposits offered by PNB post hike would be 8 per cent per annum on maturity periods of 8 to 10 years.

However, the bank has kept its benchmark prime lending rate unchanged at 11.75 per cent.

Axis Bank said the revised its base lending rate of 7.75 per cent would be effective 1 October.