SDB Club Benchmark Real Estate

Following other state-run lenders
Kolkata-based Allahabad Bank and Mumbai based Centurion Bank of Punjab (CBoP) have hiked benchmark prime lending rates on Monday.

While Allahbad bank hiked it by 75 basis points to 13.25% with effect from April 2, 2007, private sector lender Centurion Bank of Punjab raised its prime lending rate by 50 basis points to 15% with effect from April 10.

However, Allahbad bank has decided not to hike the home loan rates for loans up to Rs 10 lakh. All other loans such as existing working capital and term loan which are related to the BPLR will now go up. The bank has attributed the decision to meet the rising costs of funds.

The Reserve Bank of India (RBI) has increased the repo rate by 25 basis points to 7.25% on March 30, 2007, in a move to control price rise.

The apex bank had also increased the Cash Reserve Ratio (CRR), the proportion of deposits the commercial banks must hold in reserves, by 50 basis points. CRR was hiked for the third time in the last four months.

The country’s largest commercial bank, the State Bank of India (SBI), and Kolkata-based United Bank of India (UBI) have hiked the BPLR by 50 bps and 75 bps respectively on April 7, 2007.

Inflation has touched 6.39% in the 12 months to March 24, 2007, much above the central bank’s target band of 5-5.5% for the fiscal year 2006-07.

Meanwhile, Allahabad Bank has informed the Bombay Stock Exchange (BSE) that the bank has recorded 29.7% year-on-year growth in its total business to Rs 1.02 lakh in the financial year 2006-07.