SBI raises base rate, home loans EMIs to go up

tate Bank of India on Thursday raised its base rates by 0.25 per cent to 9.5 per cent. SBI's move to raise rates comes on the back of ICICI Bank raising rates by a similar per cent last week. SBI is India's largest bank while ICICI Bank is the second largest.

SBI has also hiked the savings deposits rate by 1 per cent across all deposits giving some relief to small investors. The new rates will be effective from July 11 this year. Also read (To seek Centre's nod for rights issue this month: SBI)

The base rate is the minimum rate at which banks can lend. With the base rate going up, home loan rates will also move up. Home loan rates are typically set 1 per cent higher than the base rate. So, a 0.25 per cent hike in base rate is likely to lead to a marginal increase in EMIs for home loans.

Earlier, SBI's Chairman Pratip Chaudhuri had said, "There is a distinct possibility of hiking base rates by today evening". Mr Chaudhuri had said SBI's base rate is lower by over 1 per cent as compared to other PSU Banks.

SBI stocks closed nearly 1.5 per cent higher on the bourses today.


Read more at: http://profit.ndtv.com/news/show/sbi-raises-base-rate-home-loans-emis-to-go-up-163249?ch=klkwrnrlwr&cp