The revised rate will be 10.20% against the current rate of 9.70%, ING Vysya Bank said in a statement.
Increases, all new and existing loans, like home, car, and individuals, companies would be costly for at least 50 points.
The revised rate applies to all existing loans at the base rate of 1 August 2011, he said.
It should be noted that more banks are likely to announce rate increases in the coming days because the cost of funds raised following the increase in base lending by the central bank.
Yesterday, the RBI raised the short-term lending (repo) rate by 50 basis points to 8% and short-term debt (liabilities) the rate of 7% to control inflation.
Thereafter, the interest rate on the marginal standing facilities, a window to additional borrowings, increased by 9% compared to the previous level of 8.5%.
Soon after the RBI announced quarterly review of monetary policy, the Bank has raised rates 50 basis points YES 10.25% and also increased the interest rate on borrowings under the old system BPLR 50 basis points.