State Bank of India increases MCLR by 10 bps, second hike since June

State Bank of India has hiked its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps), effective July 15. The overnight, one-month, and three-month MCLR now stand at 7.15 per cent. 

The six-month MCLR is at 7.45 per cent; one-year MCLR is at 7.50 per cent; two-year MCLR is at 7.70 per cent; and three-year MCLR is at 7.80 per cent. 

SBI increased its MCLR by 20 bps in June, a week after the six-member monetary policy committee increased the repo rate by 50 basis points (bps) to 4.90 per cent. 

The revision in lending rates follows the hike in benchmark policy rates undertaken by the central bank's rate-setting body to tame headline inflation, which has been breaching the upper tolerance limit of the RBI for quite some time now.