Corporation Bank has also followed suit of lenders like Punjab National Bank and Union Bank of India and raised its prime lending rate by 50 basis points.

"Corporation Bank has revised its benchmark prime lending rate (BPLR) from 12 per cent to 12.50 per cent with effect from August 2, 2010," it said.

PNB and Union Bank of India have raised their BPLRs in order to push the customers towards base rate.

Deposit rates have seen a rise for most banks. This decision by banks has been triggered by the banking regulator's move of raising repo and reverse repo rates in the monetary policy review.

Several lenders including ICICI Bank, PNB and HDFC Bank have increased deposit rates after the RBI move.