Lakshmi Vilas Bank has increased its base rate or the minimum lending rate by 25 basis points (bps) to 11.25 per cent (from 11 per cent).
The private sector bank also hiked its fixed deposit rates from 75 up to 275 bps in select maturities ranging from 15 days to 270 days period.
The revised rates will take effect from August 26, 2013.
“RBI's tight liquidity and high interest rate in the shorter end of the rate curve needs suitable adjustment in deposit rates and to align with shift of operating policy rate from Reverse Repo to MSF rate,” said Moses Harding, Executive Director of the bank.
It is also expected that high interest rate regime is there to stay till rupee settles down in its comfort zone and there is clarity on US Fed's stance of quantitative easing, he said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.