State Bank of Travancore raised BPLR by 14 percent

Last week the Reserve Bank of India (RBI) raised its benchmark rate for the third time in two months. The apex bank raised by a higher-than-expected 50 basis points to 9 percent is the highest in seven years and the cash reserve ratio by 25 basis points.

Following this State Bank of Travancore, a unit of State Bank of India, the country's biggest lender, has raised its benchmark prime lending rate by 50 basis points to 14 percent with immediate effect.

Consequently, several state-run and private sector banks have started raising their respective lending rates, citing higher cost of funds.