 "Commercial banks mobilised ~1.45 trillion through certificates of deposit (CDs) in June to strengthen their balance sheets ahead of the quarter-end, according to data from the Clearing Corporation of India.")
Reflecting the increase in the cost of funds, three public sector banks – Bank of Baroda, Canara Bank, and UCO Bank – have hiked their Marginal Cost of Funds Based Lending Rate (MCLR) by five basis points across select tenors.
UCO Bank, the Kolkata-based bank, reduced the Treasury bill benchmark linked rates by 5-15 basis points.
BOB, Mumbai-based, in a filing with the exchange said it revised MCLR for the three-month tenor to 8.5 per cent from 8.45 per cent, and the six-month bucket to 8.75 per cent from 8.7 per cent. The revised MCLR for one-year loans will be 8.95 per cent, up from 8.9 per cent.
BOB’s cost of deposits rose from 4.68 per cent in the quarter ended June 2023 (Q1 FY24) to 5.06 per cent in the quarter ended June 2024 (Q1 FY25). BOB’s yield on advances rose from 8.4 per cent in Q1 FY24 to 8.55 per cent in Q1 FY25. As a result, the net interest margin (NIM) declined from 3.27 per cent to 3.18 per cent.
Bengaluru-based Canara Bank hiked MCLR across all tenors. Now, the revised rate in the three-month bucket will be 8.45 per cent, up from 8.4 per cent, and the one-year MCLR will be 9.0 per cent, up from the old rate of 8.95 per cent, Canara Bank said in an exchange filing. Its cost of deposits rose from 5.22 per cent in Q1 FY24 to 5.7 per cent in Q1 FY25, and its yield on advances rose from 8.43 per cent to 8.66 per cent. Consequently, its NIM moderated from 3.05 per cent to 2.9 per cent.
Kolkata-based UCO Bank’s exchange filing showed it hiked MCLR for the one-month tenor from 8.3 per cent to 8.35 per cent, and the one-year MCLR from 8.9 per cent to 8.95 per cent. It revised TBLR for one month from 6.85 per cent to 6.7 per cent, and TBLR for 12 months from 7.0 per cent to 6.9 per cent.
UCO Bank, the Kolkata-based bank, reduced the Treasury bill benchmark linked rates by 5-15 basis points.
BOB, Mumbai-based, in a filing with the exchange said it revised MCLR for the three-month tenor to 8.5 per cent from 8.45 per cent, and the six-month bucket to 8.75 per cent from 8.7 per cent. The revised MCLR for one-year loans will be 8.95 per cent, up from 8.9 per cent.
BOB’s cost of deposits rose from 4.68 per cent in the quarter ended June 2023 (Q1 FY24) to 5.06 per cent in the quarter ended June 2024 (Q1 FY25). BOB’s yield on advances rose from 8.4 per cent in Q1 FY24 to 8.55 per cent in Q1 FY25. As a result, the net interest margin (NIM) declined from 3.27 per cent to 3.18 per cent.
Bengaluru-based Canara Bank hiked MCLR across all tenors. Now, the revised rate in the three-month bucket will be 8.45 per cent, up from 8.4 per cent, and the one-year MCLR will be 9.0 per cent, up from the old rate of 8.95 per cent, Canara Bank said in an exchange filing. Its cost of deposits rose from 5.22 per cent in Q1 FY24 to 5.7 per cent in Q1 FY25, and its yield on advances rose from 8.43 per cent to 8.66 per cent. Consequently, its NIM moderated from 3.05 per cent to 2.9 per cent.
Kolkata-based UCO Bank’s exchange filing showed it hiked MCLR for the one-month tenor from 8.3 per cent to 8.35 per cent, and the one-year MCLR from 8.9 per cent to 8.95 per cent. It revised TBLR for one month from 6.85 per cent to 6.7 per cent, and TBLR for 12 months from 7.0 per cent to 6.9 per cent.
 "Bank of Baroda")
 "Bank of Baroda")
