The leading infrastructure and construction equipment finance firm Srei BNP Paribas has announced a hike in its benchmark rate by 25 basis points, from 17.75 per cent to 18 per cent, with immediate effect.
The company´s Asset Liability Management Committee met recently 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.
According to DK Vyas, CEO, Srei BNP Paribas, the tight monetary policy has put pressure on the cost of liquidity and is expected to continue as long as the monetary policy remains tight due to the overall macro-economic scenario.