Benchmark Prime Lending Rate (referred to as SBAR) has been revised upwards by 75 bps from 11.50% p.a. to 12.25% p.a. with effect from 20th February 2007.

Considering the importance of providing cost-effective credit to the important sectors of the economy, the following sectors will be excluded from the impact of the above change in SBAR by appropriate adjustment of spreads above/below SBAR wherever applicable:

All existing Housing Loans under Priority Sector,

All existing Educational Loans,

New Educational Loans up to Rs. 4 Lacs, and

Agricultural Production Loans less that Rs. 3 Lacs.

Term premia of 50 bps will be added as per extant instructions for loans with maturity of 3 years and above