Home loans and auto financing from public sector State Bank of India would be dearer as the lender has decided to hike interest rates by 50 basis points on all credit linked to prime lending rates.
Speaking at a function at Ghaziabad on Monday, State Bank Chairman-cum-Managing Director O P Bhatt said the bank has decided to raise the interest rate by 0.5 per cent on all loans such as home loans and auto loans which are linked to PLR.
The revision in PLR came after SBI raised its PLR from 12.25 per cent to 12.75 per cent last week following Reserve Bank's
increasing its key short-term lending rate to banks and the mandatory cash deposits that banks need to keep with the apex bank by 0.5 per cent each.
Referring to the impact on bank's profit margins, Bhatt he hoped to maintain the net interest margin at 3
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