Oriental Bank of Commerce (OBC), a public sector lender, has hiked its base rate by 25 basis points to 10.25 per cent from 10 per cent. The bank has also increased the benchmark prime lending rate (BPLR) by 25 basis points to 14.50 per cent from 14.25 per cent. Both these changes will come into effect from Tuesday. Base rate is the minimum lending rate at which the bank offers loans.
OBC had recorded a net interest margin (NIM) of 3.18 per cent as at end March 2011, higher than the NIM level of 2.56 per cent in end-March 2010. In April this year, OBC's Chairman and Managing Director, Mr Nagesh Pydah, had given a NIM guidance of “above 3 per cent” for 2011-12.