Corporation Bank raises its base lending rate

The bank announced that it has increased base rate from 9.90 per cent to 10.25 per cent with effect from July 1, 2011. With the hike, new housing, auto and other loans would become costlier.

Earlier this month, RBI hiked key short-term lending and borrowing rates by 25 basis points (0.25 per cent) each with immediate effect to tackle inflation.