In a sign of hardening rates, the country's largest lender State Bank of India (SBI)
has hiked its bulk deposit rates (for amounts in excess of Rs 1 crore)
by 50-140 basis points (100bps = 1 percentage point) to bring it on a
par with retail rates
This is the second time that the bank is raising its wholesale deposit rates in two months.
With the country's largest bank raising rates, other lenders are expected to follow suit. The new benchmark rate — the marginal cost of lending rate (MCLR) — is being linked directly to borrowing costs, which raises the likelihood that interest rates on loans will also inch up in coming months.
With the country's largest bank raising rates, other lenders are expected to follow suit. The new benchmark rate — the marginal cost of lending rate (MCLR) — is being linked directly to borrowing costs, which raises the likelihood that interest rates on loans will also inch up in coming months.
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