More banks announced hikes in lending and deposit rates, following the hike in key short term rates by the Reserve Bank of India, last week.
Bank of Maharashtra hiked its base rate and benchmark prime lending rate (BPLR) by 25 basis points. The revised base rate is 10.5 per cent and BPLR, 14.75 per cent.
Corporation Bank has increased the rate of interest on term deposits for different bands with effect from August 1. The revised interest rates for deposits of less than Rs 1 crore are as follows: For maturity band of 91 days to less than six months, the rate has been hiked to 9 per cent (8.30 per cent); and for six months to less than 12 months, to 9.50 per cent (9.15 per cent for deposits of less than Rs 15 lakh and 9 per cent for deposits of Rs 15 lakh to less than Rs 1 crore).
Karnataka Bank Ltd has also increased the rate of interest on term deposits for certain bands with effect from August 2. The revised rates are as follows: for maturity band from 91-180 days, the new rate is 7.75 per cent (7.5 per cent); above three years to five years, 9.5 per cent (9.25 per cent); and above five years, 9.25 per cent (9 per cent).