The hike will make the BPLR-related loans of the bank dearer to its customers. With this, vehicle loans having a three-year tenor will now carry an interest rate of 12 per cent as against 10.5 per cent earlier, the bank's website said.

However, the lender has spared its educational loan borrowers and housing loans up to Rs 20 lakh from the hike in benchmark rate, the bank said.

Customers who opt for home loans above Rs 20 lakh in five-year tenor, will have to pay 1 per cent more floating rate at 10.75 per cent as against 9.75 per cent earlier, the bank said.

Fixed rate for housing loans above Rs 20 lakh with a tenor of up to five years, has been upped to 11.25 per cent from the existing 10.25 per cent, the bank said.

Similarly, floating rates for 5-10 year home loans above Rs 20 lakh, has been revised to 11.25 per cent from 10.25 per cent.

The bank's asset liability committee (ALCO), which met on Saturday, decided to hike rates in view of the recent monetary policy actions from RBI in its quarterly review of its annual monetary policy.

The Reserve Bank, in its quarterly monetary policy review, hiked the cash reserve ratio and repo rate by 0.25 per cent and 0.5 per cent respectively to check inflation, now at 12.01 per cent.