Srei BNP Paribas raises its benchmark rate by 25 basis points

Infrastructure and construction equipment financing company Srei BNP Paribas has announced a hike in its benchmark rate by 25 basis points, from 17.75 % to 18 %, with immediate effect.
The company’s Asset Liability Management Committee met here and after reviewing the cost of borrowing, decided to increase its benchmark rate. This has been necessitated because of the continuing increase in borrowing cost due to market and regulatory factors. Srei BNP Paribas had last increased its benchmark rate in August, 2013 by 50 basis points.
 D. K. Vyas, CEO, Srei BNP Paribas, said, “With RBI increasing its key rates to manage inflation, it had become imperative to increase our rates to maintain the quality of our portfolio. The tight monetary policy has put pressure on the cost of liquidity and is expected to continue as long as our monetary policy remains tight due to the overall macro-economic scenario.”

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