Axis Bank hikes MCLR by 25 bps, joining other lenders in policy action

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

Axis Bank has increased its marginal cost of funds-based lending rate (MCLR) by 25 basis points (bps) with effect from October 18. Accordingly, the bank’s overnight to three-year MCLR now ranges from 8.15 per cent to 8.50 per cent.

The increase in lending rate by the country’s third largest private sector bank comes after the central bank’s six-member rate-setting body--monetary policy committee (MPC)—raised the benchmark repo rate by 50 bps in its September meeting, taking the repo rate to 5.90 per cent.

It was the third consecutive 50 bps hike delivered by the MPC and cumulatively the repo rate has