ICICI Bank, Bandhan Bank, Karnataka Bank increase MCLR across tenors

Loan rates going up after central bank's rate-setting committee hiked benchmark policy rate by 50 basis points

ICICI Bank and Bandhan Bank are among lenders that on Thursday increased their marginal cost of funds-based lending rate (MCLR), almost a month after the rate-setting committee of the Reserve Bank of India (RBI) hiked the benchmark policy rate by 50 basis points (bps).

ICICI Bank, India’s second largest private sector lender, hiked its MCLR by 10 bps across tenors, effective September 1. Its overnight to one-year MCLR now ranges between 7.75 per cent and 8 per cent, according to the bank’s website.

Kolkata-based private sector lender Bandhan Bank increased its MCLR by 41-65 bps across tenors, resulting in its