PNB, BoB raise lending rates by up to 25 bps following RBI rate hike

Leading public sector lenders Punjab National Bank and Bank of Baroda have raised their lending rates by up to 25 basis points following the interest rate hike by Reserve Bank earlier this week

Leading public sector lenders Punjab National Bank (PNB) and Bank of Baroda (BoB) have raised their lending rates by up to 25 basis points following the interest rate hike by Reserve Bank earlier this week.

PNB in a regulatory filing said it has effected a 25 basis point increase in the Repo Linked Lending Rate (RLLR) from 8.75 per cent to 9 per cent effective from Thursday.

The Reserve Bank on Wednesday hiked the benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation.

It was the sixth time the interest rate has been hiked by the Reserve Bank of India (RBI) since May last year, taking the total quantum of increase to 250 basis points.

BoB increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenures.

The new rates are effective from February 12, BoB said in a regulatory filing.

After the latest revision, its MCLR has risen from 7.85 per cent to 7.90 per cent for the overnight tenure.

The MCLR for one month has been raised from 8.15 per cent to 8.20 per cent.

The MCLR for three-month tenure has climbed from 8.25 per cent to 8.30 per cent while that for the one-year tenure has been hiked from 8.5 per cent to 8.55 per cent, it said.