IndusInd Bank and RBL Bank increase MCLR days ahead of MPC meeting

MPC has increased the repo rate by 140 bps cumulatively since May in an effort to rein in inflation

IndusInd Bank and RBL Bank have increased their marginal cost of funds-based lending rates (MCLR) effective Thursday, announcing their decision days ahead of the monetary policy meeting’s (MPC) meeting on repo rate.

IndusInd Bank hiked its MCLR by 5 to10 basis points across tenors. The private lender’s overnight to three-year MCLR now ranges between 8.30 per cent and 9.80 per cent.

RBL Bank, which is privately held, hiked its lending rate by 20 bps across tenors. Its overnight to one-year MCLR now ranges between 8.25 per cent and 9.45 per cent.

Last week, mortgage financiers LIC Housing Finance and Indiabulls