HDFC said that new borrowers will have to pay at least 11 per cent a year under the adjustible or floating rate schemes, while those opting for fixed rate loans will have to borrow at 14 per cent. It also raised deposit rates by 50 basis points across most maturities. The new rates are applicable from July 1. 

Last week, following an increase in repo rate, or the rate at which banks borrow from the Reserve Bank of India, by 50 basis points to 8.50 per cent and an increase in the cash reserve ratio, or the proportion of deposits kept with the central bank, by another 50 basis points to 8.75 per cent, a host of banks including State Bank of India, Canara Bank, Punjab National Bank [Get Quote], Union Bank of India [Get Quote] and Axis Bank have raised their lending rates by 25 to 50 basis points.
 
Today, Bank of India said it has revised its PLR by 50 basis points to 13.25 per cent. Another private player Axis Bank said it raised its PLR last week by 50 basis points to 15.25 per cent.
 
Dena Bank increased its PLR by 50 basis points to 13.50 per cent with effect from July 1. It also said that term deposits will rise by 25 to 75 basis points for various maturities of 180 days and above with effect from July 4. Deposits with maturity of two years and above will now earn an interest rate of 9 per cent.
 
Vijaya Bank too raised its PLR by 25 bps to 13.25 per cent with effect from July 1. The rate for term deposits of 180-364 days has been increased by 50 basis points to 8 per cent, while for deposits from 1 year to less than two years, the rate has been increased by 20 basis points to 9 per cent.
 
While most banks had absorbed the 25 basis point increase in repo rates earlier in the month, they have decided to pass on the latest round of hikes to protect their net interest margins. ICICI Bank's Vaidyanathan said the bank will watch the market conditions before deciding the future course of action.