Private sector lender, HDFC Bank has announced a rise in its retail prime lending rate by 50 basis points. This rise would mean a corresponding rise in all retail loan rates for the bank.

The revised rates would come into effect from today, May 16, 2011.

"This is in line with the increase in interest rates in the economy, which have hardened mainly due to high inflation," a spokesman for HDFC said.

As per the floating rate scheme of the bank, the new interest rates following revision would be 10.25% for loans upto Rs 30 lakhs. For loans between Rs 30.01 to Rs 75 lakh, the interest would be 10.50% while it would be 11% for loans above Rs 75 lakh, said the spokesperson.