SBI, UBI hikes PLR

Banks have started hiking lending and deposit rates. State Bank of India (SBI) and Union Bank of India (UBI) have increased their prime lending rates (PLR) by 50 basis points each.

SBI's PLR has increased to 12.75 per cent from the earlier 12.25 per cent and UBI's new PLR is 13.25 per cent from 12.75 per cent.

The increase in banks PLR has made retail loans - auto, home and personal more expensive.

UBI has also increased its interest rates on term deposits by 25-100 basis points, across different maturities. The revised rates will be effective from July 1, 2008.