SBI hikes prime lending rate by 50 bps to 12.75 per cent

Mumbai: The State Bank of India (SBI), the country''s largest bank, has revised its benchmark prime-lending rate (BPLR) upwards by 50 basis points (bps) to 12.75 per cent effective April 9, a press release issued by the bank said.

The rate hike follows the Reserve Bank''s hike in the repurchase rate and cash reserve ratio by 50 basis points.

Many other banks such as ICICI Bank and HDFC Bank have already raised PLR by up to one percentage point.

Private sector banks had been quick to respond to RBI''s move with many jacking up their rates within three-four days of the banking regulator''s move.

While Yes Bank upped its PLR on March 30 itself, ICICI Bank, HDFC Bank, HDFC Ltd and UTI Bank also raised their rates early last week.

Bank of Baroda became the first public sector bank to hike its PLR this time and was soon followed by State Bank of India (SBI), which effected a 0.50 per cent hike in its PLR on April 7.

While Punjab National Bank has already decided to hike its PLR, others such as Union Bank of India (UBI) and Indian Overseas Bank (IOB) are expected to do so early this week.

Chennai-based IOB is expected to effect a 0.75 per cent increase and UBI is believed to be mulling a 0.50-0.75 per cent raise.

Others in the public sector space, including Bank of India, Oriental Bank of Commerce, Dena Bank, Canara Bank, Syndicate Bank and Corporation Bank are expected to take a call on their rates beginning this week.

SBI shares were trading at Rs979, up Rs31.05 or 3.28 per cent on volume of 128021 shares compared to 2 week average quantity of 467218. The stock had hit an intraday high of Rs983 and a low of Rs948.60.