Mumbai: Standard Chartered has increased its minimum rate of lending by 25 basis points to 9.75 percent to become the second foreign bank to do so since RBI raised its key policy rates in July.
The rate hike is effective from September 1.
"The base rate has been arrived at considering the 6-9 month term-deposit rate blended with current and savings account (CASA) cost, and other elements that are common across all categories of borrowers," the bank said.
With an eye on inflation numbers, the Reserve Bank of India (RBI) has hiked its key rates a record 11 times since March 2010, the last being on July 26. Inflation stood at an uncomfortable 9.22 percent for July.
Hongkong and Shanghai Banking Corporation (HSBC) was the first foreign lender to hike its base rate by 50 basis points to 9.75 percent on August 3.
HSBC had also hiked its deposit rates. It was immediately not known if Standard Chartered has also hiked its deposit rates.