IDBI Bank to hike base lending rate by 50 basis points

IDBI Bank today announced a 50 basis point hike in its benchmark prime lending rate as well as its deposit rate, after the Reserve Bank of India raised its repo and reverse repo rates by 25 bps each.

IDBI Bank had raised its base rate by 50 basis points to 8.5 per cent in October and the current hike will lift it to 9.0 per cent.

IDBI Bank said it would issue further details later.

Banks across-the-board are expected to raise their lending rates in the coming days in line with the RBI's policy guidelines.

The RBI rate hike, which has been in line with the expectations of bankers, will lead to an increase in interest rates for housing loans, car loans and personal loans. It may also affect education loan rates also.