State Bank of India (SBI), the country’s largest lender, has raised its marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) across all tenures, a move that will lead to an increase in EMIs for borrowers.

With the increase, EMIs will go up for those borrowers who have availed loans on MCLR, not for those, whose loans are linked to other benchmarks.

The revised MCLR rate is effective from July 15, according to the information posted on the SBI website. With the revision, one-year MCLR has increased to 8.55 per cent, from the earlier 8.50 per cent. Most of the loans are linked to the one-year MCLR rate.

An overnight, one-month and three-month MCLR rose by 5 bps to 8 per cent and 8.15 per cent, respectively, whereas a six-month MCLR increased to 8.45 per cent.

Two-year MCLR also increased by 5 bps to 8.65 per cent, while three-year MCLR rose to 8.75 per cent.

From October 1, 2019, all banks, including SBI, have to lend only at an interest rate linked to an external benchmark such as RBI’s repo rate or Treasury Bill yield. As a result, monetary policy transmission by banks has gained traction.

Utkarsh SFB IPO

The initial public offer of Utkarsh Small Finance Bank was a huge hit among investors as it got subscribed a whopping 101.91 times on the last day of subscription on Friday.

The initial share sale got bids for 1,228.46 crore shares against 12.05 crore shares on offer, as per data available with the NSE.

The category for Qualified Institutional Buyers (QIBs) received a mammoth 124.85 times subscription while the non-institutional investors part got subscribed 81.64 times. The quota for Retail Individual Investors (RIIs) got 72.10 times subscription.

PTI