State-owned lender, IDBI Bank, has increased its yardstick prime lending rates (BPLR) by 50 basis points to 13.25% which will be in force from August 05.

For the meantime, a senior official of State bank of India on the condition of anonymity announced that that the nation’s biggest lender was also gravely contemplating of raising its deposit rates and the State Bank Advance Rate
(SBAR) as well by 25 bps in the upcoming future. Te only problem being that the bank was even now having an excess liquidity of Rs 19-20,000 crore with it.

IDBI bank has increased its charge on retail term deposits by 25-75 bps in various maturity brackets, operative from August 6. The bank has hiked its interest rates on term deposits up to Rs 1 crore, maturing in 46-90 days, to
4.25%, from the presently offered mark of 3.75%. Likewise, the bank has hiked its deposit rates to 7.75%, from present existing mark of 7.5%, for term deposits with a maturity period of 1100 days. Nonetheless, the bank has not altered its base rate, which remains to be 8%.

In an interview, P Sitaram, chief financial officer, IDBI Bank, claimed that the amendment in deposit rates and BPLR was aligned with present market prospects. Sitaram added that “We will be taking a view on our base rate sometime later.”

Previously, public sector banks like Punjab Union Bank of India and National Bank Corporation Bank had increased their lending and deposit rates. PNB hiked its rate to 11.75 % from 11 % with effect from August 1.Corporation Bank increased its prime lending rate by 50 basis points from 12% to 12.50 % with effect from August 2, 2010.