India Markets closed

Canara Bank increases base rate by 25 bps to 10.2%

New Delhi: India lender Canara Bank has raised its base rate by 25 basis points to 10.2%, thereby becoming the first major state-run bank to do so after the Reserve Bank of India kept its repo and CRR rates unchanged in the December 2013 Mid-Quarter Monetary Policy Review.

The bank's base rate hike comes into effect from January 1, 2014, the bank said in a filling with BSE.

The hike in minimum lending rate has made home and auto loans dearer. Previously, the base rate was fixed at 9.95%.

The benchmark prime lending rate of the bank has been aligned to 14.45% from 14.20%, the bank said.

ICICI Bank, State Bank of India, Kotak Mahindra Bank and Housing Development Finance Corp Ltd have lowered their interest rates on home loans after the monetary policy announcement by the central bank.