Interest rate hikes are continuing with the Bank of Rajasthan (BoR) and IDBI Bank also announcing their respective hikes in deposit and lending rates.

Effective from July 1, private-sector lender, Bank of Rajasthan (BoR), has decided to hike its Benchmark prime lending rate (BPLR) by 0.5 per cent to 15 per cent.The bank has also decided to revise its deposit rates by the same margin, hiking it by upto 0.5 per cent across various maturities.

The bank said in a press release that, all PLR related lending rates will go up with immediate effect.

The bank is also revising its Retail prime lending rate from 9.25 per cent to 9.5 per cent. This would also cause a corresponding hike in BoR's floating home loan rates which it pursues under the 'Apna Ghar Scheme'.

Following the hike, interest rate of home loans upto Rs 20 lakhs in five year maturity are up to 12 per cent, as against the existing 11.75 per cent. For loans upto Rs 30 lakhs in the same maturity, the revised rate is 11 per cent (10.75 per cent), the bank said.

IDBI Bank also raised its benchmark prime lending rate (BPLR) by 0.5 percent.

IDBI's Chief Financial Officer, R K Bansal said that, the BPLR of the bank now stands at 13.75 per cent, a hike following the RBI dual rate increase.

Bansal also announced a hike in the interest rates on various maturity deposits by 0.25-0.75 percent.

"We decided to hike our lending rates after most of our peer banks did so. Also, there was an an urgent need to hike the deposit rates given the impact of high inflation rates on customers," Bansal said.

Unlike most of its peer banks, though, the revision in IDBI’s deposit rates will come into effect from July 4.

The decisions to hike their lending and deposit rates by IDBI Bank and BoR have been taken after most of the big banks revised their rates. This revision in rates by most of the banks of the country has been taken as on the 24th of June, the RBI had hiked the repo rate and the CRR by 50 basis points each. This had made it costlier for banks to borrow money from the RBI. This step was taken by RBI to sustain the double digit inflation prevalent in the economy.