MCLR Hike

The country's largest lender SBI on Thursday announced a 0.05 per cent increase in the marginal cost of fund-based lending rate (MCLR) in some tenors. The one-year MCLR, a key tenor to which long-term loans like home finance are linked, has been increased by 0.05 per cent to 9 per cent effective from Friday, as per a notice on the lender's website. The lender has hiked the MCLR twice in the recent past, amid fears that the higher cost of deposits because of the war on the liabilities side among banks will ultimately result in higher ending rates. The bank's Chairman C S Setty had said 42 per cent of the bank's loan book is linked to the MCLR, while the rest is external benchmark-based. He had also made it clear that the deposit rates have peaked in the system and the bank will not use rate as a pull factor for the customer. SBI has also upped the MCLR in the three- and six-month tenors, and maintained it in the overnight, one month, two-year, and three-year tenors.

The latest increase in MCLR by SBI comes days after the RBI left the repo rate unchanged at 6.5 per cent

SBI executives said this revision is part of the process to pass on the increase in cost of funds to borrowers and protect margins

The one-year MCLR has risen to 8.85%, while the six-month and three-month MCLR rates have been increased to 8.65% and 8.45%, respectively

According to the SBI website, only the overnight rate has remained unchanged. As of December 15, the MCLR for the one-year tenure has been raised to 8.65 per cent, up from 8.55 per cent

As of December 7, 2023, the revised rates for overnight MCLR stand at 8.70 per cent; for one month, it is 8.75 per cent; for three months, it is 8.90 per cent; for six months, it is 9.15 per cent

ICICI Bank has increased its MCLR by 5 basis points for all tenures. According to ICICI Bank's official website, the overnight and one-month MCLR rates are now at 8.50 per cent

State-owned Bank of Maharashtra (BoM) on Thursday said it has increased its marginal cost of funds-based lending rate (MCLR) for select tenure by 10 basis points. The benchmark one-year MCLR, used to price most consumer loans such as auto, personal and home, has been revised upwards to 8.60 per cent from 8.70 per cent, the lender said in a regulatory filing. The revised MCLR has come into effect from October 11, 2023. At the same time, the Pune-based bank has increased its fixed deposit rates by up to 125 basis points, or 1.25 per cent, with effect from Thursday. The rate increase applies to fixed deposits and special schemes as per the period maintained by the bank, the lender said in a statement. The hike in deposit rates will encourage individuals and businesses to save more as there is a sharp increase of 125 bps in deposit rates for the tenure of 46-90 days, it said. For a tenure of 1-year interest would be 6.50 per cent, and for deposits above one year, customers will enjoy

A number of public sector banks, including Bank of Baroda (BoB) and Canara Bank, raised the marginal cost of funds based lending rates (MCLR) by up to 10 basis points even though RBI retained policy rate on Thursday. The move will make EMIs linked to MCLR expensive. The one-year tenor MCLR is the rate against which most consumer loans are tied to. The revised one-year MCLR would be 8.70 per cent as against the existing rate of 8.65 per cent, BoB said in a regulatory filing. The new rate would be effective from August 12, it said. Canara Bank too raised its MCLR by 5 basis points to 8.70 per cent effective August 12. Another public sector lender, Bank of Maharashtra (BoM) has increased its MCLR by 10 basis points. With the hike, the rate of one-year MCLR rises to 8.60 per cent as compared to 8.50 per cent, BoM said in a filing. The revised rate is effective from August 10, 2023, it said. The Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6

State Bank of India (SBI), 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, as per the information posted on 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. At the same time, 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 .

State-owned Bank of Maharashtra (BoM) on Monday announced increase in the marginal cost of funds based lending rates (MCLR) by 10 basis points across tenors. The revision in MCLR is effective from April 15, 2023. The benchmark one-year MCLR is up by 10 basis points to 8.50 per cent, it said. The one-year rate is used to fix most consumer loans such as auto, personal and home loans. The overnight and one-month tenor MCLRs are raised by 0.10 per cent to 7.90 per cent and 8.10 per cent each while the six-month maturity bucket increased to 8.40 per cent.

RBI has raised policy repo rate by 250 basis points in stages to 6.5% in February 2023

Overnight and one-month MCLR rates are now at 8.50%, while the MCLR for three months is at 8.55%, ICICI Bank's website showed

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

State Bank of India has raised the marginal cost of funds-based lending rate (MCLR) by 15 basis points across tenors, making most consumer loans costlier for borrowers. The revised rates come into effect from November 15, 2022. The benchmark one-year MCLR, which is used as base for fixing most of home, auto and personal loans, has been raised by 10 basis points (bps) to 8.05 per cent, as against 7.95 per cent earlier. Likewise, the two-year and three-year MCLRs have been raised by 10 basis points each to 8.25 per cent and 8.35 per cent, respectively, SBI said in a notification on its website. Among others, one-month and three-month MCLRs have been increased by 15 basis points each to 7.75 per cent. The six-month MCLR is up by 15 basis points at 8.05 per cent while the overnight rate is higher by 10 basis points at 7.60 per cent.

State-owned Bank of Baroda on Thursday said it has increased its marginal cost of funds based lending rate by up to 15 basis points (bps) across tenors. The lender has approved the revision in marginal cost of funds based lending rate (MCLR) with effect from November 12, 2022, Bank of Baroda said in a regulatory filing. The benchmark one-year tenor MCLR has been raised by 10 basis points to 8.05 per cent. It is the rate at which most of the consumer loans such as personal, auto and home are tied to. Among others, the overnight rate has been raised to 7.25 per cent from 7.10 per cent earlier. The one, three and six-month MCLRs were raised by 10 basis points each to 7.70 per cent, 7.75 per cent and 7.90 per cent, respectively.

State-owned Bank of Maharashtra on Wednesday said it has increased its marginal cost of funds based lending rate (MCLR) for select tenor loans. The benchmark one-year MCLR, used to price most of consumer loans such as auto, personal and home, has been revised upwards to 7.90 per cent from 7.80 per cent, the lender said in a regulatory filing. The revised MCLR has come to effect from November 7, 2022. The one-month MCLR has been raised by 5 basis points to 7.50 per cent. Rates for other tenor loans like overnight, three and six months have been kept unchanged. Bank of Maharashtra stock traded at Rs 24.25 apiece on BSE, up by 4.08 per cent.

Private sector DCB Bank has revised upwards the marginal cost of funds-based lending rate by 27 basis points across tenors. The revised rates will come to effect from November 5, 2022, DCB Bank said in a regulatory filing on Friday. The benchmark one-year MCLR rate will be priced at 10.23 per cent from Saturday against the existing rate of 9.96 per cent. The one-year tenor MCLR is used to price most of the consumer loans, such as housing, auto and personal. The one, three and six-month tenor MCLRs will be 9.63 per cent, 9.79 per cent and 10.02 per cent, respectively. While the overnight tenor MCLR will be 9.58 per cent.

Central bank's MPC has cumulatively increased the repo rate by 190 bps since May

State-owned Bank of Maharashtra (BoM) on Monday raised the marginal cost of funds-based lending rates (MCLR) by 0.20 per cent or 20 basis points across tenors. The revision will make loans linked to MCLR benchmark costlier. The benchmark one-year MCLR will be 7.80 per cent from Monday, as against 7.60 per cent. The one-year rate is used to fix most consumer loans such as auto, personal and home loans. The overnight to six months tenor MCLRs are raised by 0.20 per cent each in the range of 7.30 to 7.70 per cent. The hike has been effected in their benchmark rate linked to the repo rate, which was increased by half a percentage point to 5.9 per cent last month by the Reserve Bank of India. Many banks led by State Bank of India (SBI) have already adjusted their lending rates after the Reserve Bank raised the benchmark interest rate to tame inflation.