Public sector lender, IDBI Bank has increased its Prime Lending Rate by 50 basis points. Banks have moved towards the strategy of increasing their PLRs in order to push customers towards base rate system of lending.

The bank has also raised its interest rates on deposits by 25-75 basis points. Most banks have increased deposit rates on different maturities following the policy rate hike by RBI in the monetary policy review.

IDBI's revised policy rates would come into effect from 6th August 2010.

RBI has increased repo rate by 25 basis points and reverse repo rate by 50 basis points. Repo rate is the rate at which RBI lends to banks while reverse repo rate is one at which banks park their excess funds with RBI.