New Delhi, Feb 1 (Agencies): Following the Reserve Bank of India’s (RBI) move to increase rates to tame inflation, three more state-owned banks, including Oriental Bank of Commerce and Indian Bank on Tuesday upped their deposit and lending rates by 50 basis points.

Besides, Indian Overseas Bank has also increased its base rate from 9 per cent to 9.5 per cent with effect from Tuesday itself.

The decision to hike deposit and lending rates comes after similar announcements made by Punjab National Bank, Allahabad Bank and Punjab & Sind Bank on Monday.

OBC’s fixed deposit rates will be hiked by 25 basis points for deposits of varying maturities. It will pay the highest rate of 9.25 per cent for 500-day deposits.

Indian Bank has announced an increase in base lending rates by 50 basis points to 9.5 per cent.

While the higher deposit rates would provide better returns to savers, rise in base rates would mean increased the EMIs for auto and home loan borrowers.

Banks have been raising interest rates following a 25 basis point hike in short-term lending (repo) and borrowing (reverse repo) rates announced by the Reserve Bank in its third quarterly review of monetary policy last week.