Public sector lender State Bank of India (SBI) has hiked both the deposit and loan rates, a day ahead of the crucial monetary policy review by the Reserve Bank of India that may lead to easing liquidity conditions in the money market.
SBI has hiked the base rate by 10 basis points to 9.8 per cent, while deposit rates were increased by 30-100 basis points (bps) across various maturities. Interestingly, the Bank has also hiked the spreads on home and auto loans by 30 bps. The increase in lending rate will help the Bank to protect its margins at 3.5 percent, said SBI MD and CFO Arundhati Bhattacharya.
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