SBI announced a hike of 0.25 per cent in its lending rate

SBIState Bank of India (SBI), India’s largest banker has announced on Friday to increase its lending rates by 0.25%. The hike will take effect from Monday, February 14. The bank has its minimum rate at which it can make a loan is called as a base rate.

Hike in base rate means that interest rates on all kinds of loans linked to the base rate will get costlier by that much.

In addition to 0.25% increase in interest rates, the bank also offers an interest rate of 9.25 per cent on fixed deposits of 555 days and 1,000 days maturity.

SBI stock price rose by 3.52% and closed at 2,584.65 on Friday.

SBI‘s major shareholder- government has not given its approval for the launch of its proposed rights offering aggregating Rs 20,000 crore this fiscal.

On the other hand, SBI chairman OP Bhatt looks very positive and said that the bank will successfully launch its right issue in March.