SBI hikes prime lending rates; details here

State Bank of India (SBI) hiked its prime lending rate to 12.30 percent from 10 percent and the base rate by 10 bps to 7.55 percent. It has kept the marginal cost lending rate unchanged.

A large number of loans are still lent on marginal cost of funds based lending rate (MCLR) and all the new loans are on external benchmark based lending rate (EBLR), when that changes then SBI's margins will change. At the moment, a small positive for SBI margins, but a big signal for the loan market, which means it’s a rate increase, which means the regime of falling rates is over.