Private sector lender Yes Bank has announced a hike in its base rate following the policy rate hike by Reserve Bank of India yesterday.

The bank has been the first to respond to the rate hike by the central bank.

Base rate has been raised by 50 bps to 10.25% now.

Benchmark prime lending rate (BPLR) has been raised by the same amount.

"The increase in base rate will enable the bank to fully absorb the increased costs on account of rising interest rates," it added.