HDFC hikes lending rate

By IANS,

Mumbai : Private sector bank HDFC has increased its benchmark prime lending rate (PLR) by 25 basis points.

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According to a HDFC spokesperson, the bank has increased its PLR to 15.25 percent. “This is effective from June 18, 2008,” he said.

The bank had earlier raised its PLR from 14 percent to 15 percent in April.

HDFC’s latest hike comes a week after the Reserve Bank of India (RBI) raised repo rates by 0.25 percent to 8 percent June 11.

Most public sector banks declined to say whether they too would follow suit, saying they would adopt a wait-and-watch policy as they believed the RBI would take corrective measures to rein in inflation, which breached the double-digit mark in the week ended June 7.