SBI raises Base Rate by 10bps
New Delhi, Dec. 18 (Delhi Crown): Country’s largest public sector bank the State Bank of India (SBI) has increased its base rate (BR) by 10 basis points. BR is a benchmark used for some of its floating rate loans.
As a normal, 100 base points is equal to 1 percentage point.
In banking circles, the move indicates that the cost of funds will gradually start moving northwards.
Following the revision with effect from December 21, the bank’s revised BR stands at 7.55%. The change will impact a small section of borrowers whose loans are still linked to the BR.
Besides, the SBI has also revised its Prime Lending Rate (PLR) to 12.3% from 12.2%, a move expected to impact an even smaller number of borrowers.