Two private sector lenders have raised their lending rates by 10 basis points across tenors. Kotak Mahindra Bank and Federal Bank have increased their marginal cost of funds based lending rate with effect from Monday.

Following the decision, the revised interest rates stand at 9.15-9.40 per cent in the case of Federal Bank, while the new MCLR for customers of Kotak Bank stand from 8.35 per cent for an overnight tenor to 9.35 per cent in the case of loans having a tenure of three years.

While Kotak Bank’s one-year MCLR is now at 9.20 per cent, it stands at 9.40 per cent in the case of Federal Bank.

The one-year MCLR is used by banks to price most of the loans in the consumer segment such as auto and home loans.

Shares of Kotak Bank on Tuesday closed 1.43 per cent, or Rs 28.20, lower at Rs 1,944.85 on the BSE. The Federal Bank scrip settled at Rs 127.05, a drop of 0.31 per cent over its last close.