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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.
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.
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.