SBI Increases Prime Lending Rate

Mumbai: All loans, comprising existing home loans, offered by State Bank of India will be priced higher from April 9. This follows the 0.5% point hike in the benchmark Prime Lending Rate (PLR) declared by the bank on Saturday. The benchmark PLR (referred to as SBAR) has been revised upwards to 12.75 per cent from 12.25 per cent per annum, effective April 9. An increase of 50 basis points is good enough for us to maintain its margins. With this hike, they could see a slow down in credit growth from the current 26 per cent to around 22 per cent. The bank''s total outstanding advances stand at around Rs 3,30,000 crore. The floating rate stands revised at 10.75 per cent for new loans with a tenor of up to five years. The SBI''s home loan portfolio is around Rs 38,000 crore. The bank has also decided to extend the deposit schemes that offer the highest interest rates beyond March 31.