SBI, PNB, ICICI Bank raise lending rates ahead of RBI policy review
State Bank of India increases the lending rate by 10 basis points across all tenors up to three years.business Updated: Jun 01, 2018 21:19 IST
Days ahead of Reserve Bank of India’s monetary policy review, India’s three major banks SBI, PNB and ICICI Bank on Friday increased their benchmark lending rates or MCLR by up to 0.1%, making loans costlier for consumers.
The new rates are effective from Friday.
India’s largest lender SBI has increased the lending rate by 10 basis points across all tenors up to three years.
Now SBI’s overnight and one-month tenors’ Marginal Cost of Funds Based Lending Rate (MCLR) stands at 7.9% as against 7.85%, as per the SBI’s website.
The MCLR for a three-year tenor increased to 8.45% from 8.35% cent earlier.
The state-owned Punjab National Bank(PNB), the country’s second largest lender, raised the MCLR for three-year and five-year tenors to 8.55% and 8.7%, respectively.
Country’s second largest private bank ICICI Bank too said it has raised five-year tenor MCLR by 10 bps to 8.70%. It has also raised the MCLR by 10 bps in loans with tenor of one year and three years.
However, lending rate remains unchanged in case of loans up to three months.
PNB has also increased the base rate to 9.25% from the earlier 9.15%.
Private sector bank ICICI Bank too has raised one-year MCLR by 10 bps to 8.40% from on Friday.
Other banks, sources said, were also likely to follow suit.
Most of home and auto loans are linked to MCLR.
Meanwhile, mortage lender HDFC said that it has increased its retail prime lending rate (RPLR), on which its adjustable rate home loans (ARHL) are benchmarked, by 10 basis points, effective tomorrow.
Karnataka Bank has raised its interest rates on deposits.
Interest on domestic and NRE rupee term deposits for a period of one year to two years stands revised to 7.25% from 7.10 (for deposits up to Rs 10 crore) representing a hike of 15 basis points, it said in a regulatory filing.
The revised rates are effective from on Thursday, it added.