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Indian Overseas Bank hikes base rate
Indian Overseas Bank said it has
revised its base rate from 10.25 percent to 10.75 percent in
response to the Reserve Bank of India's 50 basis points
increase in key policy rates. The hike will be effective from
"The base rate of the bank has been revised from 10.25 percent
to 10.75 percent with effect from Aug 1 for all advances
linked to base rate," the bank said in a regulatory filing.
The bank has also increased its benchmark prime lending rate (BPLR)
by 50 basis points from existing 14.50 percent to 15 percent.
Most lenders are expected to pass on to consumers the recent
hike in policy rates by the RBI, which July 26 hiked key
policy rates by 50 basis points in the 11th such exercise
since January 2010 to tame inflation.
The repurchase rate, the interest the
central bank levies on short-term borrowing by commercial
banks, has been hiked to 8 percent from 7.5 percent and
reverse repurchase rate, or interest paid on short-term
lending, raised to 7 percent from 6.5 percent.
At the Bombay Stock Exchange, the shares of the Indian
Overseas Bank were 2.43 percent up to trade at Rs.139.35.