Joining peer lenders, SBI, Kotak Mahindra Bank and Federal Bank are the latest in the list to revise their marginal cost of funds-based lending rates (MCLRs) in addition to hikes in repo-linked rates from early October.
Following a hike in the repo rate by the Reserve Bank of India on September 30 by 50 basis points to 5.90 per cent, banks raised their repo-linked lending rates by a similar margin. Gradually, they also raised the marginal cost of funds-based lending rates.
State Bank of India (SBI) has revised MCLR for the benchmark one-year tenor to 7.95 per cent, up 25 basis points from the previous rate, which came into effect from October 15.
One-year tenor MCLR is the rate against which most consumer loans are tied.
SBI has also raised the two-and three-year tenor MCLRs to 8.15 per cent and 8.25 per cent, respectively, against 7.90 per cent and 8 per cent.
The overnight, one, three and six-month rates have been raised in the range of 7.60-7.90 per cent.
Private sector lender Kotak Mahindra Bank said MCLR for various tenors has been set in the range of 7.70-8.95 per cent with effect from October 16. Its revised one-year MCLR rate is 8.75 per cent.
South-based Federal Bank said its one-year MCLR on loans and advances has been revised to 8.70 per cent with effect from October 16.
Punjab National Bank, ICICI Bank, Yes Bank, HDFC Bank and Bank of Baroda are among the lenders which have already raised their MCLR rates following the RBI rate action.
The hike in MCLR rates comes in addition to a hike in repo rate linked lending rates by a host of lenders, including SBI, ICICI Bank, Punjab National Bank, Bank of India, and mortgage lenders as soon as RBI increased the repo — the rate at which it lends short term money to banks — on September 30.
Private sector lender Axis Bank last revised its MCLR on September 17.
BoB deposit rate up
Meanwhile, Bank of Baroda has hiked the interest rates on foreign currency non-resident (FCNR) deposits across various currencies and maturity periods by up to 135 basis points.
The new deposit rates came to effect on October 16 and will remain in force till November 15, Bank of Baroda said in a release on Monday.
The State Bank on Saturday reduced the interest rate on savings accounts by a marginal 5 basis points to 2.70 per cent effective October 15.
PTI
