India's largest lender, State Bank of India, on Monday raised its benchmark lending rate by 50 basis points. This makes the rate at 12.25 per cent.

It will in line increase the prices of home loans, vehicles and other corporate-linked prices for the existing borrowers. For the new borrowers, the rate will stand at 7.5 per cent. This is applicable to those who borrow money on or after July 1.

Meanwhile, SBI has fixed the deposit rate at 150 basis points and will be applicable across different maturities.

The bank took this decision after the RBI increased the key basic rates in order to control the spiraling prices. In a statement with the BSE it said that the bank has revised its benchmark lending rates. Instead of 11.75 per cent like earlier it will now be 12.25 per cent per annum.

As for the fixed deposit rate, they have been raised by 1.5 per cent to around 4 per cent per annum, for term deposit with maturity of 15-45 days. For anything higher, the rates are even steeper.

SBI has also come up with floating fixed deposit products. These are going to be linked to base rate.