Calcutta: State Bank of India has increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points across tenors, effective April 15.

According to the bank’s website, the overnight, one-month and three-month MCLRs have been hiked to 6.75 per cent each from 6.65 per cent earlier. The one-year MCLR stands at 7.10 per cent from 7 per cent earlier.

The six-month MCLR is now 7.05 per cent from 6.95 per cent previously.

The two-year and three-year MCLRs have been hiked to 7.30 per cent and 7.40 per cent, respectively.

MCLR is an internal reference rate for banks set by the Reserve Bank of India (RBI) to help define the minimum interest rate on various types of loans, including home loans.

The RBI’s repo rate has been kept unchanged at 4 per cent since May 2020. That’s the rate at which the central bank lends short-term funds to banks. Retail inflation in India jumped to a 17-month high of 6.95 per cent in March from 6.07 per cent in February, driven by high food prices.

If inflation concerns persist and there are no shocks to growth, interest rates will likely be hiked later this year, according to market analysts.

$500m raised

SBI on Monday said it has raised $500 million (over Rs 3,800 crore) through its IFSC Gift City branch. This is the first offshore dollar secured overnight financing rate (SOFR)-linked syndicated loan raised by the bank at Gift City, a release said.

The facility is for $400 million plus $100 million as a green shoe option.

“The successful launch of a syndicated loan at such a fine pricing demonstrates the kind of reputation SBI has created for itself in offshore financial markets allowing it to efficiently raise funds even during ongoing turbulence in the markets,” managing director Ashwini Tewari said.