Private sector lender Dhanlaxmi Bank has announced a hike in its base rate. The south based lender has raised rates by as much as 25 bps.

The base rate of the bank now stands at 10.25%.

The lender has also raised its benchmark prime lending rate (BPLR) by 25 bps taking it to 19.25% now.

"The hike in our base rate and BLPR reflects tight monetary conditions and is in line with market trends," the bank's Chief Financial Officer Bipin Kabra said.

With Reserve Bank of India raising policy rates on June 16, many banks have moved towards increasing lending rates including majors like ICICI Bank, Canara Bank etc.