The benchmark prime lending rate (BPLR) has been increased from 12 per cent to 12.50 per cent with effect from August 6, the lender said in a statement.This would make the floating rate for existing home and auto loans costlier.
The bank has also increased the term deposit rates by 25-100 basis points from August 5.
Fixed deposit rate for 1,000 days would now attract an interest rate of 7.5 per cent, against 6.75 per cent.
For 7-14 days maturity slab, the bank has effected a 100 basis-point increase to 2.5 per cent, but in this case deposits should be over Rs 1 crore.Term deposit rate with maturity between 91 and 179 days has been raised by 50 basis points to 5.50 per cent.
For fixed deposits between 180 and 269 days, the new rate 6 per cent, up by 50 basis points, while for 270 days to one year, it has been revised upward by 25 basis points to 6.25 per cent.
The increase in three-five years tenor category is 25 basis points at 7.25 per cent. The rate for fixed deposits between 5-10 years has gone up by 0.50 per cent 7.50 per cent.
OBC's hike in lending and deposit rates follow leaders like ICICI Bank, Punjab National Bank, Union Bank of India and HDFC Bank, which also have raised interest rates following upward revision key policy rate by Reserve Bank of India last month.
RBI in its monetary review on July 27 raised short-term borrowing (reverse repo) rate by 50 basis points and lending (repo) rate by 25 basis points.It, however, kept cash reserve ratio, a requirement for banks to keep portion of their deposits with the central bank in cash, unchanged due to difficult liquidity position in the markets.