Joining the rate hike bandwagon, state-run lender Indian Bank today raised its lending rates by 50 basis points, within days of the Reserve Bank announcing an increase in its short-term lending and bank savings rates.

The sixth bank to announce the rate hike after RBI’s move, the PSU lender has upped its Base Rate from 9.50 per cent to 10 per cent per annum, while increasing its Benchmark Prime Lending Rate (BPLR) to 14.25 per cent from 13.75 per cent earlier.

The new rates would be effective from May 5, 2011, Indian Bank said in a filing to the Bombay Stock Exchange.

Already, five leading banks, including PNB, OBC and YES Bank, have increased their interest rates by half a percentage point with effect from today, making all loans costlier.

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