Indian Bank has raised its home loan rates by 0.25 percentage points from February 1 following a 25-basis-point hike by the Reserve Bank of India in its key short-term lending rate on January 31.
Indian Bank has raised its benchmark prime lending rate (PLR) by 50 basis points to 12.50 per cent from February 1.
Some other banks are also expected to increase their home loan rates. On Wednesday, Yes Bank chairman and managing director Rana Kapoor said the bank would increase its PLR by 50 basis points from February 1. ICICI Bank is also contemplating an increase in its benchmark PLR.
Punjab National Bank may also increase its home loan and other personal loan rates. “We will take a decision in a day or two,” S.C. Gupta, chairman and managing director of Punjab National Bank, said.