Public sector lender Central Bank of India has increased its base rate by 50 basis points.

The base rate of the bank thus stands at 8.50% as against 8% earlier. These revised rates have come into effect from 20 October 2010.

The bank now comes in league with many of its counterparts who have already raised their base rates in the recent times.

Banks have been mandated to review their base rates every quarter. This is the first quarterly review of base rate since its inception in July 2010.

The base rate hike has also been partly triggered by the policy rate hike by RBI in the second quarter review of monetary policy.