Public sector lenders Oriental Bank of Commerce (OBC) and Bank of India (BOI) have raised their base rates by 50 basis points.

The base rate for both banks now stands at 8.5%.

A senior official of OBC confirmed the rise. Increase in base rate will correspondingly see rise in home, auto, personal as well as education loans.

Many banks have so far raised their base rates following the policy rate hike by Reserve Bank of India in the second quarter review of monetary policy.

Rising deposit rates and consecutive rise in cost of funds necessitated the need for rise in base rate, said the official from OBC.

RBI guidelines say that banks need to review their base rate every quarter.

So far base rate has been raised by major lenders like Punjab National Bank, Axis Bank, Indian Bank, ICICI Bank, HDFC Bank and many more.