State Bank of India has raised its marginal cost of funds-based lending rate (MCLR) by 10 basis points that will lead to higher EMIs for borrowers who have benchmarked their loans on MCLR.

Borrowers who have taken loans on the basis of external benchmarks such as the RBI's repo rate or the government's treasury bill yield will not be impacted by the decision.

India's No.1 bank has raised one-year MCLR to 8.75 per cent from 8.65 per cent.

Overnight MCLR has been raised to 8.10 per cent from 8 per cent, while one-month and three-month MCLRs are up to 8.30 per cent from 8.20 per cent.

Most of the loans are linked to one-year MCLR. The rates will take effect from June 15, according to the SBI website.

Two-year MCLR is up to 8.85 per cnt from 8.75 per cent.

From October 2019, all banks have to give loans based on external benchmarks such as the repo rate or T-bill yield that have ensured greater transmission of any rate change by the RBI on other loans including home and auto loans.

Bonds mop-up

SBI has raised ₹830 crore via bonds.

The country’s largest lender said in a regulatory filing on Friday that it has completed the issuance of $100 million senior unsecured floating rate notes having a maturity period of three years.