It raised the key one-year MCLR to 8.30 percent from the existing 8.15 percent.
The five-year MCLR, on the other hand, was raised to 8.45 percent to 8.60 percent.
The country's largest bank, State Bank of India (SBI), too increased its interest rates on loans by 10-25 bps.
It raised the one-year MCLR to 8.15 percent from 7.95 percent.
The three-year MCLR was raised to 8.35 percent from 8.10 percent.