Both Dena Bank and Union Bank have decided to hike their PLRs to 12.5 per cent and 12 per cent respectively, while keeping the deposit rates unchanged. The rate hike of the Union Bank of India and Dena Bank will be effective from Friday. Earlier, ICICI bank and Hong Kong Bank had announced similar measures of hiking their PLR by minimum 50 basis points.

SBI chairman GG Vaidya said here today that the bank is closely watching the developments in the money market, gilts and share market and is likely to announce a hike in its PLR. ``The bank will take all the factors into consideration before reacting to the Reserve Bank of India (RBI)'s recent hike in the bank rate,'' he said.

He said the bank's asset liability committee will take a decision on the hike in the banks' interest rates. ``I will monitor the market situation for the next two days and may come up with a final reaction on behalf of SBI by next week,'' Vaidya said while reiterating his views on the hike in the banks interest rates.