Seven lenders hike interest rates by up to 50 basis points (Half Percent)

Seven lenders, including Bank of Baroda (BoB) and HDFC, today raised interest rates by up to 50 basis points, in response to the Reserve Bank’s tight monetary policy announced last week. While BoB and Oriental Bank of Commerce (OBC) raised the deposit rates, HDFC, Indian Bank, Indian Overseas Bank (IOB), Bank of India (BoI) and Dena Bank hiked their lending rates.

BoB raised it deposit rates by 50 basis points (bps) to 9.10 per cent for 444 days deposits till March 2011 and for deposit of 1 year and up to 443 days to 8.75 per cent, with effect from tomorrow.

OBC has decided to raise the fixed deposit rates by 25 basis points for deposits of varying maturities. It will pay the highest rate of 9.25 per cent for 500-day deposits.