Canara Bank hikes lending rate by 50 basis points

NEW DELHI: Canara Bank has decided to hike its repo rate linked lending rate by 50 basis points or 0.50 per cent to 8.30 per cent with effect from August 7. Canara Bank's decision comes just a day after the Reserve Bank of India (RBI) hiked policy repo rate to tame inflation.

As per data updated on Canara Bank website, the interest rate on home loans will be increased to 8.10 per cent for general customers. For women customers, it will be hiked to 8.05 per cent. Canara Bank offers 0.05 per cent concession to women borrowers.

Canara Bank's decision on rate hike has come a day after the Reserve Bank of India (RBI) hiked policy repo rate by 0.50 per cent or 50 basis points. The Monetary Policy Committee of the RBI that met during 3-5 August unanimously decided to increase the policy repo rate by 50 basis points to 5.4 per cent, with immediate effect.

Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.15 per cent; and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent. The MPC also decided to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.