Private sector lender ING Vysya Bank has announced hike in both its base rate as well as benchmark prime lending rates (BPLR) each by 25 bps. The base rate of the bank now stands at 9.7% while the BPLR stands at 18.25%.

The bank happens to be the first amongst lenders to raise rates following the recent 25bps hike in policy rates by Reserve Bank of India.

Shailendra Bhandari, MD and CEO, ING Vysya Bank, said, "We are not normally not the first off the block, but the RBI is keen on quick monetary transmission."

Speaking on the rate hike, CMD of ICICI Bank, Ms Chanda Kocchar said, "This measure (rate increase) and the prevailing systemic liquidity conditions could lead to an increase in funding costs for banks and in lending rates."

S Raman, CMD, Canara Bank, said, "Our bank may increase its base rate by 25 basis points this week."