The country's largest commercial bank, SBI, announced a hike in its benchmark prime lending rate by 75 basis points, the highest by any bank so far in the latest round of rate hikes. The hike includes home loans, excluding existing loans falling under the priority sector.
This is a first instance of a public sector bank revising upwards its home loan rates .
SBI's rates have been revised upwards from from 11.5% to 12.25% with effect from feb 20. The bank has also raised its deposit rates to 9.75%, which is 25 bps for tenures between four and five years , and to 8.75% , 50 bpshigher, for tenures of five to ten years, for alimited period upto march 31.
Existing housing loans under priority sector, all existing education loans, agricultural production loans less than Rs. 3 lakh, and new education loans upto Rs. 4 lakhs stand excluded.