New Delhi: The country's largest bank, State Bank of India, has hiked its Prime Lending Rate (PLR) by 50 basis points or half a per cent with effect from Wednesday, the bank informed the Bombay Stock Exchange.
After the hike, the bank's PLR will stand at 11.5 per cent as against the current 11 per cent.
The decision would make all loans linked to the PLR, whether corporate or retail, expensive. A repricing of loans offered to corporates on sub-PLR rates is also expected.
Although, it is still not certain whether the decision will impact home and retail loan rates, some of them linked to PLR could go up.
Over the weekend, other PSU banks like Oriental Bank of Commerce, ICICI Bank, HDFC Bank, Yes Bank and Centurion Bank of Punjab (CBoP) had raised their PLR following the RBI's decision to raise Cash Reserve Ratio.
The PLR hike is third in the year for SBI, which hiked it by 0.5 per cent first in April from 10.25 per cent to 10.75 per cent and then again in August by 0.25 per cent to 11 per cent.
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