Country's largest lender State Bank of India, SBI announced a hike in lending rates by 75 basis points. With this hike in lending rates housing, auto and other loans will become dearer for both new and existing borrowers. State-owned SBI has increased the base rate, or the minimum lending rate, by 75 basis points (0.75 per cent) to 9.25 per cent. SBI said in a statement that the new rate is effective from May 12. The hike in State Bank of India's lending rates comes a week after the Reserve Bank raised its lending and borrowing rates by 50 basis points. SBI has also increased its benchmark prime lending rate (BPLR) by 75 basis points which would mean that existing borrowers will also have to pay more for their loans. With this, BPLR goes up to 14 per cent. Many banks have been on a rate hike spree since the Reserve Bank's decision to raise short-term key rates in its annual credit policy on3rd May .